Sterling Bank vs UnionBank: Home Loan Overview
When comparing home loan options in the Philippines, it's important to look beyond just the advertised interest rate. Factors like minimum income requirements, accepted employment types, loan purposes covered, and the ease of the application process all play a major role in determining which lender is truly the better fit for your situation.
Sterling Bank of Asia is a thrift bank that offers home loan products, but it has a smaller footprint compared to major commercial banks. Its rates and eligibility requirements are not as widely published, which can make the comparison process more challenging for borrowers doing their research online. UnionBank, on the other hand, is one of the Philippines' leading universal banks and a verified Nook partner bank, meaning borrowers can apply through Nook completely free of charge and get access to UnionBank's current best rates.
Note: Interest rates are subject to change. Always verify current rates directly with the bank or through Nook before making a borrowing decision.
Interest Rate Comparison
| Feature | Sterling Bank | UnionBank |
|---|---|---|
| 1-Year Fixed Rate | Not publicly listed; contact bank directly | 7.00% p.a. |
| Home Equity / Refi Rate | Not publicly listed | 7.00% p.a. |
| Rate Transparency | Low — requires branch visit or inquiry | High — rates available through Nook |
| Nook Partner Bank | No | Yes — apply for free |
For borrowers currently paying 8%, 9%, or even 10% on an existing home loan, refinancing to UnionBank's 7.00% p.a. rate through Nook could result in significant monthly savings. For example, on a 3,000,000 loan with 20 years remaining, dropping from 9% to 7% could save roughly 3,500 to 4,500 per month — that's over 40,000 in savings per year.
Eligibility Requirements
| Criteria | Sterling Bank | UnionBank |
|---|---|---|
| Minimum Monthly Income | Not publicly listed | 30,000 |
| Maximum DTI Ratio | Not publicly listed | 50% |
| Employment Types Accepted | Limited info available | Private, Government, BPO, OFW/Seafarer, Self-Employed, Professional |
UnionBank's minimum monthly income requirement of 30,000 is accessible for a wide range of Filipino earners, and the 50% maximum debt-to-income (DTI) ratio means that even borrowers with existing financial commitments may still qualify. The breadth of accepted employment types — including OFWs, seafarers, BPO employees, and self-employed professionals — makes UnionBank one of the more inclusive lenders in the market.
If you're also evaluating government lending options, our comparison of Pag-IBIG vs UnionBank home loan rates may be helpful reading.
Loan Purposes Covered
| Loan Purpose | Sterling Bank | UnionBank |
|---|---|---|
| Ready For Occupancy (RFO) | Likely supported | Yes |
| Pre-Selling | Unclear | Yes |
| Reselling | Unclear | Yes |
| Home Renovation | Unclear | Yes |
| New Construction | Unclear | Yes |
| Home Equity / Cash Out | Unclear | Yes |
| Foreclosed Properties | Unclear | Yes |
UnionBank covers the full spectrum of home loan purposes, from purchasing a new pre-selling condo to refinancing an existing loan or unlocking equity from your property. Sterling Bank's coverage of these use cases is not clearly documented in publicly available materials, which means borrowers may need to make multiple inquiries before getting a clear answer.
Why Apply Through Nook?
Nook is the Philippines' first digital mortgage broker, and it's completely free for borrowers. When you apply for a UnionBank home loan through Nook, you get:
- Access to UnionBank's current best rates (7.00% p.a. for 1-year fixed and home equity)
- A dedicated mortgage advisor to guide you through the process
- Help comparing multiple bank offers side by side — not just UnionBank
- No broker fees, no hidden charges
Whether you're buying your first home, refinancing an existing loan, or taking out a home equity loan, Nook simplifies the process and puts the best options in front of you — all in one place.
You might also want to explore our comparison of PSBank vs UnionBank home loan rates if you're weighing multiple thrift bank alternatives alongside UnionBank.
Should You Refinance Your Home Loan?
If you currently have a home loan with Sterling Bank or any other lender and you're paying more than 7.00% p.a., refinancing through Nook to UnionBank could meaningfully reduce your monthly payments and total interest paid over the life of your loan.
Consider this: on a 5,000,000 home loan with 15 years remaining, refinancing from 9.50% to 7.00% could reduce your monthly payment by approximately 6,000 to 7,500 and save you over 1,000,000 in total interest. That's money that stays in your pocket — or goes toward your family's other goals.
The best part? Getting a refinance assessment through Nook costs you nothing. Nook is paid by the bank, not the borrower.
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 at UnionBank?
UnionBank currently offers a 1-year fixed rate of 7.00% p.a. for both standard home loans and home equity loans. This rate is available through Nook, which is a free service for borrowers. Rates are subject to change, so it's best to verify the current rate at the time of your application.
Does Sterling Bank offer home loans in the Philippines?
Yes, Sterling Bank of Asia offers home loan products. However, unlike major commercial banks, Sterling Bank does not prominently publish its rates, fees, and eligibility details online, which can make comparison shopping more difficult. Borrowers typically need to visit a branch or call directly to get specific figures.
Can I refinance my Sterling Bank home loan through Nook?
Yes. If you have an existing home loan with Sterling Bank and want to explore refinancing to a lower rate, Nook can help you compare options from its partner banks — including UnionBank at 7.00% p.a. Nook's service is completely free for borrowers. Nook is paid by the bank when a loan is approved.
How much can I save by refinancing from a higher rate to 7.00%?
Savings depend on your loan balance, remaining term, and current interest rate. As a general example, refinancing a 3,000,000 loan with 20 years remaining from 9.00% to 7.00% could reduce your monthly payment by roughly 3,500 to 4,500 — saving over 40,000 per year. Use Nook's free assessment to get a personalized estimate based on your actual loan details.
What employment types does UnionBank accept for home loans?
UnionBank accepts a wide range of employment types including private sector employees, government employees, BPO workers, OFWs and seafarers, self-employed individuals, and licensed professionals. The minimum monthly income requirement is 30,000, and the maximum debt-to-income ratio is 50%.
Is UnionBank a good bank for home loans?
UnionBank is one of the Philippines' major universal banks and is known for its digital-forward approach and competitive loan products. Its home loan rates start at 7.00% p.a., it accepts a broad range of borrower profiles, and it covers all major loan purposes from RFO purchases to home equity and refinancing. It is also a verified Nook partner bank, meaning you can apply through Nook for free.
How do I apply for a UnionBank home loan through Nook?
Applying through Nook is simple: visit nook.com.ph, complete the online inquiry form, and a mortgage advisor will reach out to guide you through your options. There are no broker fees — Nook's service is 100% free for borrowers. You can compare UnionBank's offer alongside other banks to make sure you're getting the best deal available.