RCBC vs UnionBank: At a Glance
Both RCBC and UnionBank are Nook partner banks, which means you can apply to either — or both — through Nook's free digital mortgage broker service. Below is a comprehensive comparison to help you understand which bank is the better fit for your situation.
| Feature | RCBC | UnionBank |
|---|---|---|
| 1-Year Fixed Rate | 7.00% p.a. | 7.00% p.a. |
| Home Equity Rate | 8.00% p.a. | 7.00% p.a. |
| Min. Monthly Income | P50,000 | P30,000 |
| Max. Debt-to-Income Ratio | 30% | 50% |
| Typical Approval Time | ~49 days | Not specified |
| Nook Partner Bank | Yes | Yes |
Note: Interest rates are subject to change. Always verify current rates with the bank or through Nook before making a financial decision.
Interest Rate Comparison
On the 1-year fixed rate, RCBC and UnionBank are dead even at 7.00% p.a. — so neither bank has a pricing advantage on standard purchase or refinance loans at the headline rate.
Where they diverge is on home equity loans. UnionBank offers a notably lower home equity rate of 7.00% p.a., compared to RCBC's 8.00% p.a. That 1 percentage point difference can be significant over a long loan term. To illustrate:
- On a 3,000,000 home equity loan over 15 years, RCBC at 8.00% would mean a monthly payment of approximately 28,660, versus UnionBank at 7.00% which would be approximately 26,960 — a monthly saving of roughly 1,700, or over 306,000 across the full loan term.
If a home equity loan is your primary goal, UnionBank has a clear rate advantage.
That said, it's worth noting that Nook's best available refinance rate across its full lender panel is currently 5.99% p.a. — well below both banks' standard rates. Applying through Nook gives you access to multiple lenders simultaneously, at no cost to you.
Eligibility & Requirements
This is where RCBC and UnionBank differ most meaningfully for many borrowers.
Minimum Monthly Income
RCBC requires a minimum monthly income of P50,000, while UnionBank's threshold is lower at P30,000. This makes UnionBank more accessible to a wider range of borrowers, including those earlier in their careers or with more modest household incomes.
Debt-to-Income (DTI) Ratio
RCBC has a stricter maximum DTI of 30%, meaning your total monthly debt obligations (including the new home loan) must not exceed 30% of your gross monthly income. UnionBank is considerably more flexible with a maximum DTI of 50%. This can make a real difference if you already carry other financial commitments such as a car loan or credit card debt.
Employment Types Accepted
Both banks are broadly inclusive in terms of employment type:
- RCBC accepts: Private employees, OFWs/Seafarers, Self-Employed individuals, and Professionals
- UnionBank accepts: Private employees, Government employees, BPO workers, OFWs/Seafarers, Self-Employed individuals, and Professionals
UnionBank has a broader employment scope, notably accepting government employees and BPO workers — two significant segments of the Philippine workforce that RCBC does not explicitly list.
Eligible Loan Purposes
The types of transactions each bank will finance also differ:
| Loan Purpose | RCBC | UnionBank |
|---|---|---|
| Ready for Occupancy (RFO) | Yes | Yes |
| Pre-Selling | Yes | Yes |
| Reselling | Yes | Yes |
| Home Equity | Yes (8.00%) | Yes (7.00%) |
| Foreclosed Properties | Yes | Yes |
| Refinancing | Yes | No (not listed) |
| New Construction | No (not listed) | Yes |
| Renovation | No (not listed) | Yes |
If you are looking to refinance an existing home loan, RCBC explicitly supports this — making it a strong candidate. For those planning new construction or renovation, UnionBank is the better fit. You may also want to explore our comparison of Pag-IBIG vs UnionBank home loan rates if you're weighing government-backed options alongside UnionBank.
Processing Time
RCBC has a published typical approval time of approximately 49 days. UnionBank does not publicly specify a standard processing timeline. If speed of approval is critical — for example, if you're in a competitive property purchase situation — RCBC's published benchmark gives you a clearer expectation to plan around.
When you apply through Nook, our team actively manages your application with the bank, helping to ensure documents are complete and follow-ups are handled promptly — which can help streamline the process regardless of which lender you choose.
Which Bank Is Right for You?
Here's a simple guide based on your situation:
- Choose RCBC if: You earn at least P50,000/month, have a low existing debt load (DTI under 30%), and you're specifically looking to refinance your existing home loan. You can also see how RCBC compares in our Bank of Commerce vs RCBC home loan comparison for additional context.
- Choose UnionBank if: Your monthly income is between P30,000 and P49,999, you have other financial commitments that bring your DTI above 30%, you work in government or BPO, or you need financing for new construction or renovation.
- Consider both through Nook if: You want to maximise your chances of approval and get the most competitive rate available. Nook submits your profile to multiple lenders simultaneously — including RCBC and UnionBank — and you only need to apply once.
Why Apply Through Nook?
Nook is the Philippines' first digital mortgage broker, and our service is 100% free to borrowers. We work with a panel of Philippine banks — including both RCBC and UnionBank — and can access refinance rates as low as 5.99% p.a., which is significantly lower than what either bank advertises directly.
When you apply through Nook, you get:
- A single application submitted to multiple lenders
- Expert guidance from a licensed mortgage specialist
- Faster processing through our bank relationships
- No broker fees, ever
Not sure which bank suits you?
Nook compares offers from 15+ banks for free. See your personalised options.
Compare My Options →Frequently Asked Questions
What is the current home loan interest rate for RCBC?
RCBC currently offers a 1-year fixed rate of 7.00% p.a. for standard home loans, and 8.00% p.a. for home equity loans. These rates are available through Nook's free mortgage broker service. Note that rates are subject to change — always confirm the latest rates before applying.
What is the current home loan interest rate for UnionBank?
UnionBank currently offers a 1-year fixed rate of 7.00% p.a., and also 7.00% p.a. for home equity loans — making it one of the more competitive options for equity release. Rates are subject to change; verify current pricing through Nook or directly with the bank.
Which bank has a lower home loan rate — RCBC or UnionBank?
On standard 1-year fixed home loans, both banks are tied at 7.00% p.a. However, for home equity loans, UnionBank has a clear advantage at 7.00% p.a. versus RCBC's 8.00% p.a. If you're looking for the lowest possible rate overall, Nook can access rates as low as 5.99% p.a. across its full lender panel.
Can I refinance my home loan with RCBC or UnionBank?
RCBC explicitly lists refinancing as a supported loan purpose. UnionBank's listed loan purposes do not currently include refinancing. If refinancing is your goal, RCBC may be the better direct option — or you can apply through Nook, which works with multiple lenders that support refinancing and can access rates starting at 5.99% p.a.
What is the minimum income required for an RCBC home loan?
RCBC requires a minimum monthly gross income of P50,000. This is one of the higher thresholds among Philippine banks, reflecting RCBC's focus on borrowers with stronger income profiles. If your income is below this, UnionBank's P30,000 minimum may be a better fit.
What is the minimum income required for a UnionBank home loan?
UnionBank requires a minimum monthly gross income of P30,000, making it one of the more accessible banks for middle-income Filipino borrowers. This lower threshold, combined with a generous 50% maximum DTI, makes UnionBank a strong option for a broader range of applicants.
Does RCBC or UnionBank have a stricter debt-to-income requirement?
RCBC is significantly stricter, with a maximum DTI of 30% — meaning your total monthly debt payments, including the new home loan, cannot exceed 30% of your gross monthly income. UnionBank allows up to 50% DTI, giving borrowers with existing financial obligations much more room to qualify.
Can OFWs apply for a home loan with RCBC or UnionBank?
Yes — both RCBC and UnionBank accept OFW and seafarer applicants. This makes both banks viable options for Filipinos working abroad who want to purchase or refinance a property in the Philippines. Applying through Nook can make the process easier, as our team can coordinate on your behalf remotely.
How long does RCBC take to approve a home loan?
RCBC has a published typical approval timeline of approximately 49 days. This gives you a concrete timeframe to plan your property purchase or refinance around. UnionBank does not publicly specify a standard processing time.
Is it free to apply through Nook for an RCBC or UnionBank home loan?
Yes, Nook's service is completely free to borrowers. Nook is a digital mortgage broker that earns a referral fee from the bank — not from you. You get expert guidance, a single application across multiple lenders, and access to the best available rates, all at no cost.