SB Finance vs UnionBank: Home Loan Rate Comparison
SB Finance, the consumer lending arm of Security Bank, and UnionBank of the Philippines are both recognized home loan providers in the local market. But they differ meaningfully in rate structures, borrower eligibility, and the range of loan purposes they support. Here's a detailed side-by-side look.
| Feature | SB Finance | UnionBank |
|---|---|---|
| Starting Interest Rate | Approximately 6.5%–7.5% p.a. (indicative; subject to change) | 7.00% p.a. (1-Year Fixed) |
| Home Equity Rate | Varies; consult directly | 7.00% p.a. |
| Minimum Monthly Income | Typically P30,000–P40,000 | P30,000 |
| Maximum DTI | Approximately 40% | 50% |
| Employment Types Accepted | Private employed, self-employed | Private, Government, BPO, OFW/Seafarer, Self-Employed, Professional |
| Loan Purposes | RFO, reselling, renovation | Foreclosed, Home Equity, New Construction, Pre-Selling, RFO, Renovation, Reselling |
| Nook Partner Bank | No | Yes — apply free through Nook |
Interest rates are indicative and subject to change without notice. Always verify current rates directly with the bank or through Nook before making a financial decision.
Monthly Payment Comparison: Who Saves More?
Let's run the numbers on a typical Philippine home loan scenario: a 3,000,000 peso loan over a 20-year term. We'll compare a higher rate typical of many borrowers, UnionBank's published rate, and the best rate currently available through Nook.
| Scenario | Rate | Est. Monthly Payment | Total Interest Paid |
|---|---|---|---|
| High-rate borrower (typical) | 9.00% p.a. | ~26,992 | ~3,478,080 |
| SB Finance (indicative) | 7.50% p.a. | ~24,168 | ~2,800,320 |
| UnionBank | 7.00% p.a. | ~23,259 | ~2,582,160 |
| Best rate via Nook | 5.99% p.a. | ~21,482 | ~2,155,680 |
On a 3,000,000 peso loan, switching from a 9.00% rate to Nook's best available rate of 5.99% p.a. saves approximately 1,322,400 pesos in total interest over 20 years — or roughly 5,510 pesos per month. Even moving from SB Finance's indicative rate to UnionBank's 7.00% rate saves around 218,160 pesos over the life of the loan.
These are illustrative estimates based on a simple amortization model. Actual payments will vary based on your exact loan amount, term, bank fees, and the specific repricing schedule offered. Always confirm with your lender.
Eligibility: Who Qualifies at Each Bank?
One of the most overlooked factors in choosing between home loan providers is eligibility — not just who has the better rate, but who will actually approve you.
SB Finance Eligibility (Indicative)
- Filipino citizen or foreign national with eligible visa
- Minimum age 21 at application, maximum 65 at loan maturity
- Minimum monthly income typically around P30,000–P40,000
- Primarily supports private employed and self-employed borrowers
- Debt-to-income ratio generally capped around 40%
UnionBank Eligibility
- Filipino citizen or foreign national with eligible visa
- Minimum monthly income of P30,000
- Maximum debt-to-income ratio of 50% — giving you more room if you have existing loans
- Accepts a wide range of employment types: Private, Government, BPO, OFW/Seafarer, Self-Employed, and Professionals
- Supports loan purposes including foreclosed properties, home equity, new construction, pre-selling, RFO, renovation, and reselling
UnionBank's broader eligibility criteria — especially its acceptance of OFWs and BPO workers, and its higher DTI allowance — make it accessible to a wider range of Filipino borrowers. If you're comparing other lenders alongside UnionBank, you might also find our Pag-IBIG vs UnionBank comparison helpful, particularly if you're currently on a Pag-IBIG loan and considering refinancing options.
Loan Purposes: What Can You Use the Loan For?
Not all home loans are created equal when it comes to what you can actually finance. Here's how SB Finance and UnionBank stack up on eligible loan purposes.
| Loan Purpose | SB Finance | UnionBank |
|---|---|---|
| Ready For Occupancy (RFO) | Yes | Yes |
| Reselling | Yes | Yes |
| Renovation | Yes | Yes |
| Pre-Selling | Limited | Yes |
| New Construction | Limited | Yes |
| Home Equity | Not widely advertised | Yes — at 7.00% p.a. |
| Foreclosed Properties | Not widely advertised | Yes |
UnionBank's support for home equity loans is particularly notable. If you already own a property and want to unlock its value — whether for business capital, education, or major expenses — UnionBank's 7.00% home equity rate is worth exploring. For borrowers considering a broader set of bank options alongside UnionBank for home equity, see our PSBank vs UnionBank comparison for another angle on competitive rates.
Why Applying Through Nook Beats Going Directly to Either Bank
Here's the thing most borrowers don't realize: going directly to a single bank means you only see that bank's rates. You have no way of knowing if another lender could offer you something better — without repeating the entire application process all over again.
Nook is the Philippines' first digital mortgage broker. When you apply through Nook, you get:
- Access to multiple lender rates in one application — including UnionBank and other Nook partner banks
- The best refinance rate currently available: 5.99% p.a. — significantly below what most borrowers are paying today
- 100% free service — Nook's broker fee is paid by the bank, not by you
- Expert guidance — Nook's mortgage specialists help you navigate eligibility, documentation, and approval
- Faster processing — digital-first workflows reduce the back-and-forth typical of bank applications
Whether you're a first-time buyer or an existing homeowner looking to refinance, Nook gives you leverage that walking into a branch simply cannot match. Most Filipino homeowners are currently paying between 7% and 10% on their home loans — refinancing to 5.99% p.a. through Nook could mean savings of over a million pesos across a 20-year loan term.
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Compare My Options →Frequently Asked Questions
What is the difference between SB Finance and UnionBank home loans?
SB Finance is the consumer lending arm of Security Bank and offers home loans primarily to private-employed and self-employed borrowers. UnionBank offers home loans with a starting rate of 7.00% p.a., accepts a broader range of employment types including OFWs, BPO workers, and government employees, and supports a wider range of loan purposes such as home equity, foreclosed properties, and new construction. UnionBank is also a Nook partner bank, meaning you can apply through Nook for free and compare it alongside other lenders.
Which bank has a lower interest rate — SB Finance or UnionBank?
Both banks offer rates in a similar range, but UnionBank's published 1-year fixed rate starts at 7.00% p.a. SB Finance's indicative rates are approximately 6.5%–7.5% p.a., though these can vary based on loan size, term, and borrower profile. Importantly, the best home loan refinance rate currently available through Nook is 5.99% p.a. — lower than either bank's standard offering — and applying through Nook is completely free.
Can I refinance my SB Finance home loan through Nook?
Yes. If you currently have a home loan with SB Finance and are paying a higher interest rate, you may be eligible to refinance through Nook. Nook will assess your loan details and present you with the best available rates across partner banks, including UnionBank at 7.00% p.a. and potentially as low as 5.99% p.a. The entire broker service is free to you as the borrower.
How much can I save by refinancing from a high rate to UnionBank's 7.00%?
On a 3,000,000 peso loan over 20 years, refinancing from 9.00% to UnionBank's 7.00% p.a. rate reduces your monthly payment from approximately 26,992 pesos to 23,259 pesos — a saving of about 3,733 pesos per month, or approximately 895,920 pesos over the loan term. If you refinance to Nook's best available rate of 5.99% p.a., your monthly payment drops further to approximately 21,482 pesos, saving around 5,510 pesos per month versus a 9% rate.
Does UnionBank accept OFW home loan applications?
Yes. UnionBank accepts home loan applications from OFWs and seafarers, along with private-employed, government-employed, BPO, self-employed, and professional borrowers. This makes UnionBank one of the more flexible lenders in the Philippine market. SB Finance's eligibility for OFW borrowers is more limited by comparison.
What is the minimum income required to qualify for a UnionBank home loan?
UnionBank requires a minimum monthly income of 30,000 pesos. The maximum debt-to-income (DTI) ratio allowed is 50%, which means up to half of your gross monthly income can go toward total loan repayments. This DTI threshold is relatively generous and allows borrowers with existing financial obligations to still qualify for a home loan.
Is Nook's mortgage broker service really free?
Yes, completely. Nook is compensated by the bank — not the borrower — when a loan is successfully placed. You pay nothing for Nook's service, yet you gain access to multiple lender rates, expert guidance, and a streamlined digital application process. There are no hidden fees or obligations to proceed after receiving your comparison.
What loan purposes does UnionBank support?
UnionBank supports a wide range of home loan purposes including the purchase of Ready For Occupancy (RFO) properties, pre-selling properties, reselling, new construction, renovation, home equity, and foreclosed properties. This makes UnionBank one of the most versatile lenders for Filipino homebuyers and investors across different property types and situations.