Planning to take out or refinance a home loan with UnionBank? Before you sign anything, it pays to know exactly what your monthly amortization will look like. UnionBank is one of the Philippines' most competitive housing loan providers, offering a 1-year fixed rate of 7.00% p.a. with accessible income requirements starting at just ₱30,000 monthly. Whether you're buying a ready-for-occupancy unit, financing a renovation, or tapping your home equity, understanding your amortization upfront helps you plan your finances with confidence.
This page answers the most common questions Filipino borrowers ask about computing their UnionBank housing loan payments — including how to calculate monthly amortization manually, what factors affect your rate, and whether refinancing through a broker like Nook could save you money. Nook's service is 100% free to borrowers, and we work directly with UnionBank as a partner bank to help you access the best available rates. Read on to get the numbers you need.
The easiest way to calculate your UnionBank monthly amortization is to use Nook's free online mortgage calculator. Simply enter your desired loan amount, preferred term (typically 15 to 25 years), and UnionBank's current interest rate of 7.00% p.a. for the fixed period. The calculator will instantly show your estimated monthly payment, total interest paid over the life of the loan, and a full amortization schedule.
If you prefer to estimate manually, the standard formula for a fixed-rate amortizing loan is: M = P × [r(1+r)^n] / [(1+r)^n – 1], where M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. For a ₱2,000,000 loan at 7.00% over 20 years, your estimated monthly amortization would be approximately 15,506 pesos.
Keep in mind that UnionBank uses a fixed rate only for the initial fixed period (e.g., 1 year). After that period, the rate reprices based on prevailing market rates. It's important to factor in potential rate changes when budgeting for the long term.
UnionBank's current housing loan interest rate in 2026 is 7.00% p.a. for the 1-year fixed period. The same rate applies to UnionBank Home Equity loans. This rate is available to qualified borrowers across multiple employment types, including private employees, government workers, BPO professionals, OFWs and seafarers, self-employed individuals, and licensed professionals.
It's worth noting that interest rates are subject to change and you should verify the latest rates directly with UnionBank or through Nook before submitting your application. If you're currently paying more than 7.00% on an existing home loan — which many Filipino homeowners are, given that rates between 7% and 10% are common — refinancing with UnionBank through Nook could meaningfully reduce your monthly payment and total interest cost. For a side-by-side rate comparison, see our guide on BDO vs UnionBank housing loan rates in 2026.
UnionBank's loanable amount for housing loans depends on several factors: the appraised value of the property, your gross monthly income, your existing debt obligations, and your chosen loan term. As a general rule, UnionBank will lend up to 80% of the property's appraised value for standard purchase and refinancing transactions.
From an income standpoint, UnionBank caps the maximum debt-to-income (DTI) ratio at 50%, meaning your total monthly debt obligations — including the new housing loan payment — should not exceed 50% of your gross monthly income. With a minimum qualifying income of ₱30,000 per month, a borrower at that income threshold could qualify for a monthly amortization of up to approximately ₱15,000, which corresponds to a loan of roughly ₱1,900,000 to ₱2,000,000 at 7.00% over 20 years. Higher-income borrowers can qualify for loan amounts well into the millions. Nook can help you determine your exact loanable amount during the free pre-qualification process.
The standard formula used by Philippine banks, including UnionBank, to compute monthly amortization on a fixed-rate home loan is:
M = P × [r(1+r)^n] / [(1+r)^n – 1]
Where:
• M = Monthly amortization
• P = Principal loan amount
• r = Monthly interest rate = Annual rate ÷ 12
• n = Total number of monthly payments = Loan term in years × 12
Example: For a ₱3,000,000 loan at UnionBank's rate of 7.00% p.a. over 25 years:
• r = 7.00% ÷ 12 = 0.5833% per month (0.005833)
• n = 25 × 12 = 300 payments
• M = 3,000,000 × [0.005833 × (1.005833)^300] / [(1.005833)^300 – 1]
• M ≈ 21,207 pesos per month
Remember that this formula applies only during the fixed-rate period. After repricing, your amortization will change based on the new interest rate in effect at that time.
Below is a sample amortization overview for a ₱3,000,000 UnionBank housing loan at 7.00% p.a. across different loan terms. All figures are approximate and assume a constant rate throughout the full term (for illustration purposes only).
| Loan Term | Monthly Amortization | Total Interest Paid | Total Amount Paid |
|---|---|---|---|
| 15 years | 26,953 | 1,851,540 | 4,851,540 |
| 20 years | 23,259 | 2,582,160 | 5,582,160 |
| 25 years | 21,207 | 3,362,100 | 6,362,100 |
As you can see, a shorter loan term means a higher monthly payment but significantly less total interest paid over the life of the loan. Choosing a 15-year term instead of a 25-year term on a ₱3,000,000 loan saves you over 1,510,560 pesos in interest — roughly half a million more in your pocket. Use Nook's calculator to run the exact numbers for your specific loan amount and situation.
UnionBank's 1-year fixed rate of 7.00% p.a. is competitive among major Philippine banks in 2026. However, rates vary by bank, loan amount, term, and borrower profile, so it's important to compare across multiple lenders before deciding. Here's a general comparison to put UnionBank's rate in context:
BDO and BPI are two of the largest housing loan providers in the Philippines and often have rates in a similar range. The actual rate you qualify for depends on your income, credit profile, loan-to-value ratio, and other factors. Even a 0.25% difference in interest rate can translate to tens of thousands of pesos in savings over a 20-year term.
For a detailed head-to-head breakdown, read our BDO vs UnionBank housing loan rates comparison. If you're also considering Chinabank, our analysis of Chinabank vs UnionBank home loan rates is a helpful resource. Nook can pull quotes from multiple partner banks simultaneously so you can compare side by side — at no cost to you.
Yes — if you're currently paying a higher interest rate on an existing home loan, refinancing with UnionBank at 7.00% p.a. could significantly reduce your monthly amortization and total interest cost. Many Filipino homeowners are still paying rates between 8% and 10% on older loans, which means there's real savings potential on the table.
Example savings from refinancing:
Suppose you have an outstanding balance of ₱2,500,000 with 20 years remaining at your current bank's rate of 9.00% p.a. Your monthly payment would be approximately 22,491 pesos. If you refinanced to UnionBank at 7.00% p.a. with the same remaining term, your new monthly payment would drop to approximately 19,382 pesos — a saving of roughly 3,109 pesos per month, or over 37,000 pesos per year.
Refinancing does come with costs such as appraisal fees, documentary stamp tax, and registration fees, so it's important to calculate your break-even point. Nook helps you factor in all these costs so you know exactly when the savings outweigh the upfront expenses. And because Nook's service is completely free to borrowers, you keep every peso of those savings.
UnionBank has relatively accessible eligibility requirements for housing loans, making it a strong option for a wide range of Filipino borrowers. Here are the key criteria:
- Minimum monthly income: ₱30,000 gross
- Maximum debt-to-income (DTI) ratio: 50% — your total monthly debt obligations must not exceed 50% of your gross monthly income
- Employment types accepted: Private employees, Government employees, BPO workers, OFWs and Seafarers, Self-employed individuals, Licensed professionals
- Loan purposes accepted: Purchase of foreclosed properties, Home equity loans, New construction, Pre-selling units, Ready-for-occupancy (RFO) properties, Renovation, Reselling transactions
OFWs and self-employed borrowers are welcome, which sets UnionBank apart from some more restrictive lenders. If you're unsure whether you qualify, Nook can conduct a free pre-qualification check on your behalf before you formally apply, saving you time and protecting your credit record from unnecessary hard inquiries.
UnionBank accepts a broad range of housing loan purposes, making it a flexible choice whether you're a first-time buyer or an experienced property investor. Approved loan purposes include:
- Ready-for-Occupancy (RFO): Purchase of fully built residential properties ready for immediate move-in
- Pre-Selling: Financing for properties still under construction or development
- New Construction: Building a new home on a lot you already own
- Renovation: Improving or expanding an existing property
- Reselling: Purchase of a second-hand or resale residential property
- Home Equity: Using your property's equity as collateral to access additional funds
- Foreclosed Properties: Acquisition of bank-owned or foreclosed real estate
This wide coverage means UnionBank can serve buyers across different stages of the property journey — from purchasing a condo off-plan to unlocking the equity in a fully paid home. If you're not sure which loan purpose category applies to your situation, Nook's mortgage advisors can guide you through the classification and documentation requirements at no charge.
Applying for a UnionBank housing loan through Nook is straightforward and completely free. Here's how the process works:
- Submit your details online: Fill out Nook's short application form at nook.com.ph with basic information about yourself, your income, and the property you're financing or refinancing.
- Free pre-qualification: Nook will assess your profile and let you know what loan amount and terms you're likely to qualify for — without affecting your credit score.
- Compare offers: As a digital mortgage broker, Nook can present offers from UnionBank and other partner banks side by side, so you can choose the best deal for your situation.
- Document submission: Nook guides you through the required documents and submits your application to UnionBank on your behalf.
- Loan approval and release: Once approved, UnionBank releases the funds according to the agreed timeline.
Throughout the entire process, Nook's team of mortgage advisors is available to answer your questions and advocate on your behalf. There are zero broker fees — Nook earns from the bank, not from you. To read about real borrower experiences with UnionBank, check out our roundup of UnionBank housing loan reviews from real borrowers. Ready to get started? Click the button below to compute your amortization and begin your free application.