UnionBank vs BDO

UnionBank vs BDO Home Loan: At a Glance

Both UnionBank and BDO are Nook partner banks, meaning you can apply to either — or both — through Nook's free digital mortgage broker service. Below is a direct comparison of their key home loan parameters for 2026.

Note: Interest rates are subject to change. Always verify current rates directly with the bank or through Nook before making a decision.

Interest Rate Comparison: How Much Can You Actually Save?

The 1.00 percentage point difference between BDO's 6.00% p.a. and UnionBank's 7.00% p.a. may sound small, but over a 20-year loan it adds up significantly. Let's look at a concrete example using a loan amount of 3,000,000.

These figures assume a fixed rate for the full loan term for illustration purposes. In practice, Philippine home loans reprice periodically. If you are currently paying 8%, 9%, or higher on an existing home loan, refinancing through Nook to either bank could save you even more — the best available refinance rate through Nook is currently 5.99% p.a.

Income Requirements: Who Qualifies More Easily?

One of the most meaningful differences between these two banks is the minimum monthly income threshold.

• UnionBank requires a minimum monthly income of 30,000, making it one of the more accessible major banks for middle-income Filipino borrowers, including young professionals and OFWs with moderate remittances.
• BDO sets its minimum at 50,000 per month, which screens out a significant portion of borrowers — particularly those in early career stages or living in regional areas where salaries tend to be lower.

Additionally, UnionBank allows a debt-to-income (DTI) ratio of up to 50%, meaning up to half of your gross monthly income can go toward debt obligations including the new home loan. BDO caps this at 40%, which can be a limiting factor if you already carry other loan commitments such as a car loan or personal loan.

If your income is below 50,000 per month or your existing debts are already significant, UnionBank may be your more realistic option even though its rate is higher.

Loan Purpose Coverage: What Can You Use the Loan For?

Both banks support a wide range of property and loan purposes, covering virtually every common scenario a Filipino homebuyer or homeowner refinancer might face.

BDO explicitly lists Refinancing as a covered loan purpose alongside RFO, pre-selling, new construction, renovation, reselling, home equity, and foreclosed properties. This makes BDO a particularly strong fit if your primary goal is refinancing an existing home loan.

UnionBank covers the same property transaction types but does not list refinancing as a separate loan purpose in its current product parameters. Borrowers looking specifically to refinance should confirm with Nook whether UnionBank's home loan product accommodates their situation.

For a deeper dive into how these two banks have historically compared on refinancing terms, see our earlier analysis: BDO vs UnionBank home loan refinancing rates.

Employment Types: Both Banks Are Flexible

Both UnionBank and BDO accept the same broad set of employment types, which is good news for borrowers across different work arrangements:

• Locally employed (private sector)
• Government employees
• BPO / call center workers
• OFWs and seafarers
• Self-employed individuals and business owners
• Licensed professionals (doctors, lawyers, CPAs, etc.)

Neither bank has an edge here — both are genuinely accessible across employment categories, which is relatively rare compared to some other Philippine lenders that restrict OFW or self-employed applications.

Processing Speed and Bank Experience

BDO publishes a typical approval timeline of approximately 30 days, which is a useful benchmark for planning your property purchase or refinance timeline. UnionBank does not publish a specific approval timeframe in its standard parameters, so borrowers should ask about expected turnaround during the application process.

BDO is the Philippines' largest private bank by assets and has one of the most extensive branch and ATM networks in the country, which some borrowers find reassuring for ongoing loan servicing. UnionBank, meanwhile, is well regarded for its digital banking infrastructure and has been an early mover in online financial services in the Philippines — which may mean a smoother digital application experience for tech-comfortable borrowers.

When you apply through Nook, both banks benefit from Nook's dedicated relationship management, which can help streamline document submission and follow-up regardless of which bank you choose.

Applying to Both Banks Through Nook

One of the most underused strategies for Philippine home loan applicants is submitting to multiple banks simultaneously. Because Nook's service is completely free to borrowers, there is no cost to applying to both UnionBank and BDO at the same time and comparing actual approval offers rather than just advertised rates.

This is especially valuable because advertised rates don't always reflect the rate you'll actually be offered — factors like your loan-to-value ratio, credit history, and income documentation can all influence your final rate. Getting two offers gives you real leverage.

You can also compare how these two banks stack up against a broader field in our BDO vs UnionBank vs Security Bank home loan rates comparison.