SB Finance vs Tonik: Home Loan Rate Comparison
Choosing between SB Finance and Tonik for your home loan — or deciding whether to refinance away from either — requires a clear look at the numbers. Below we break down the key dimensions every borrower should evaluate.
| Feature | SB Finance | Tonik |
|---|---|---|
| Indicative Fixed Rate (1-year) | 7.50% – 8.50% p.a. | 6.88% – 8.00% p.a. |
| Indicative Fixed Rate (3-year) | 8.00% – 9.00% p.a. | 7.50% – 8.50% p.a. |
| Indicative Fixed Rate (5-year) | 8.50% – 9.50% p.a. | 7.99% – 9.00% p.a. |
| Maximum Loan Amount | Up to 80% of appraised value | Up to 70% of appraised value |
| Loan Term | Up to 20 years | Up to 20 years |
| Processing Fee | Around 10,000 – 15,000 | Around 5,000 – 10,000 |
| Application Channel | Branch and online | Fully digital (app-based) |
| Salaried Borrowers | Yes | Yes |
| Self-Employed Borrowers | Yes (with additional docs) | Limited |
Rates are indicative and subject to change. Contact each lender or use Nook to get your personalised quote.
Monthly Payment Comparison on a 3,000,000 Loan
To make the rate differences concrete, here's what a 3,000,000 home loan over 20 years would cost monthly under each lender's typical rates, versus the best rate currently available through Nook at 5.99% p.a.
| Lender / Scenario | Rate | Est. Monthly Payment | Total Interest Paid |
|---|---|---|---|
| SB Finance (mid estimate) | 8.50% p.a. | 26,035 | 3,248,400 |
| Tonik (mid estimate) | 7.99% p.a. | 25,072 | 3,017,280 |
| Best rate via Nook | 5.99% p.a. | 21,474 | 2,153,760 |
At 5.99% p.a. through Nook, a borrower with a 3,000,000 loan would pay approximately 4,561 less per month versus SB Finance's mid estimate, saving over 1,094,000 in total interest across a 20-year term. Even against Tonik's more competitive digital rates, the savings via Nook amount to roughly 3,598 per month — or more than 863,000 over the life of the loan.
SB Finance Home Loan: Key Details
SB Finance Corporation is the consumer and SME lending arm of Security Bank, one of the Philippines' top universal banks. Its home loan product inherits Security Bank's underwriting infrastructure while operating as a dedicated non-bank financial institution. Borrowers who value institutional depth and a longer track record in mortgage lending may find SB Finance reassuring.
- Loan-to-value (LTV): Up to 80% of appraised property value, which is useful for borrowers with moderate equity.
- Eligible properties: House and lot, condominium units, and vacant lots in select areas.
- Repricing: After the fixed period, rates reprice based on prevailing market rates — a risk for borrowers who lock in a short fixed term at today's higher rates.
- Prepayment: Subject to prepayment penalties within the fixed rate period; confirm specific terms at application.
- Self-employed borrowers: SB Finance accommodates self-employed applicants but requires more extensive income documentation, including audited financial statements.
If you're also evaluating other lenders in the competitive segment, our PSBank vs SB Finance comparison breaks down how SB Finance's rates and terms stack up against another mid-market competitor.
Tonik Home Loan: Key Details
Tonik is the Philippines' first licensed digital bank, regulated by the Bangko Sentral ng Pilipinas (BSP). Its home loan product is designed for a mobile-first generation of borrowers who prefer managing their finances through an app rather than visiting a branch. Tonik's streamlined digital process can mean faster pre-approval timelines, though its product eligibility criteria may be narrower than traditional banks.
- Fully digital process: Applications, document submission, and disbursement are handled through the Tonik app — no branch visits required.
- LTV ratio: Typically up to 70% of appraised value, which means borrowers need stronger equity or a larger down payment compared to SB Finance.
- Eligible borrowers: Primarily targets salaried employees with stable, documentable income; self-employed borrowers may face tighter scrutiny.
- Processing speed: Tonik's digital model can accelerate the pre-approval stage, though full loan processing timelines depend on property appraisal and title verification.
- Fees: Processing fees tend to be on the lower end, consistent with Tonik's cost-efficient digital model.
Tonik is often compared alongside other digital-era and challenger bank offerings. See how it fares against another alternative lender in our Asia United Bank vs Tonik home loan comparison.
Which Borrower Profile Suits Each Lender?
Neither SB Finance nor Tonik is the right fit for every borrower. Here's a quick guide to who each lender tends to serve best:
| Borrower Profile | Better Fit |
|---|---|
| Self-employed with 2+ years ITR | SB Finance |
| Salaried, tech-comfortable, prefers no branch visits | Tonik |
| Needs high LTV (above 70%) | SB Finance |
| Wants fastest digital pre-approval | Tonik |
| Refinancing for lowest possible rate | Nook (5.99% p.a.) |
| First-time homebuyer with limited equity | SB Finance or Pag-IBIG via Nook |
The Refinancing Angle: Why Your Current Rate Matters Most
If you already have a home loan with SB Finance, Tonik, or any other Philippine lender, and your rate is above 6.5% p.a., there's a strong case for refinancing. Most Filipino homeowners are paying between 7% and 10% — often because they signed up during a higher-rate environment or their fixed period has ended and their loan has re-priced upward.
Refinancing through Nook is free for borrowers. Nook shops your application across multiple Philippine banks simultaneously, identifying the lender most likely to offer you the lowest rate given your property, income, and loan profile. The best rate currently available through Nook is 5.99% p.a.
Consider a homeowner with a 5,000,000 outstanding loan balance and 15 years remaining, currently paying 8.50% p.a. at SB Finance:
| Scenario | Rate | Monthly Payment | Remaining Interest |
|---|---|---|---|
| Stay with SB Finance | 8.50% p.a. | 49,237 | 3,862,660 |
| Refinance via Nook | 5.99% p.a. | 42,198 | 2,595,640 |
| Savings | – | 7,039 / month | 1,267,020 total |
Those savings dwarf typical refinancing costs (appraisal, notarial fees, registration), which usually total between 30,000 and 80,000 for a loan of this size — meaning most borrowers break even within 12 months and save significantly thereafter.
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Compare My Options →Frequently Asked Questions
Is SB Finance the same as Security Bank?
SB Finance Corporation is a subsidiary of Security Bank, operating as a separate non-bank financial institution focused on consumer and SME lending. While it uses Security Bank's infrastructure and credit standards, your home loan contract will be with SB Finance rather than Security Bank directly. For regulatory purposes, SB Finance is supervised by the SEC and BSP as a non-bank entity.
Is Tonik Bank regulated by the BSP?
Yes. Tonik Digital Bank is licensed by the Bangko Sentral ng Pilipinas (BSP) as a digital bank, making it a fully regulated Philippine bank. Your deposits are covered by PDIC insurance up to 500,000, and its home loan products are subject to the same consumer protection regulations as traditional banks.
Can I refinance from SB Finance or Tonik to a lower rate?
Yes, you can refinance your existing SB Finance or Tonik home loan to another lender offering a lower rate. Nook specialises in exactly this — matching borrowers to the bank most likely to approve them at the lowest available rate. The best rate currently available through Nook is 5.99% p.a., and the service is completely free for borrowers. If your current rate is above 6.5%, refinancing is very likely worth exploring.
How long does it take to get approved for a home loan with Tonik?
Tonik's digital-first model means you can complete your application and receive a pre-approval decision within a few business days in many cases. However, full loan approval — including property appraisal, title verification, and legal documentation — typically takes 3 to 6 weeks, similar to other Philippine banks. The main advantage is that Tonik eliminates the need for branch visits throughout the process.
Which is better for self-employed borrowers — SB Finance or Tonik?
SB Finance is generally the better choice for self-employed borrowers. It accepts applications from self-employed individuals with at least 2 years of operating history and audited financial statements, following the more flexible underwriting norms of its parent Security Bank. Tonik's home loan product currently focuses more heavily on salaried employees with straightforward income documentation. Self-employed borrowers should also ask Nook to compare across additional lenders, as some traditional banks on Nook's panel — such as BDO, BPI, or Metrobank — may offer competitive rates with self-employed-friendly underwriting.
What fees should I expect when applying for a home loan with SB Finance or Tonik?
Both lenders charge a processing fee (roughly 5,000 to 15,000 depending on loan size and product), plus standard third-party costs including property appraisal (5,000 to 15,000), notarial fees, mortgage registration fees, and documentary stamp tax. These costs are broadly similar across Philippine banks. When refinancing, these one-time costs are typically recovered within 12 to 18 months if you are securing a meaningfully lower interest rate.
What is the minimum loan amount for SB Finance and Tonik home loans?
Minimum loan amounts vary by lender and are subject to change, but both SB Finance and Tonik generally set minimums in the range of 500,000 to 1,000,000 for home loan products. For most refinancing scenarios — where outstanding balances tend to be 1,500,000 or above — both lenders are accessible. Always confirm current minimums directly with the lender or through Nook at application.
How does Nook compare lenders for me?
Nook is the Philippines' first digital mortgage broker. When you apply through Nook, your loan profile is assessed against the criteria of multiple Philippine banks simultaneously. Nook's advisors identify which lenders are most likely to approve your application and at what rate, then present you with your best options. The entire service is free for borrowers — Nook is compensated by the bank that ultimately funds your loan, not by you.