COMPARE

Banking

Chequing accounts

Chequing accounts

Compare accounts

Best chequing accounts

Best no fee chequing accounts

Best chequing accounts in Canada

Best Simplii chequing accounts

Best Tangerine chequing accounts

Best Coast Capital chequing accounts

Get guidance

Chequing account resources

Personal finance calculators

How to find a routing number

A 9-digits bank code

How to write a cheque

Send money with a cheque

Savings accounts

Savings accounts

Compare accounts

Best savings accounts

Best high-interest savings accounts

Best TFSA accounts

Best RRSP accounts

Best savings accounts in Canada

Get guidance

Savings account resources

Savings calculators

How to save money

50/30/20 budget split tips

How to save for a downpayment

The myth of 20% down

Business accounts

Business accounts

Compare accounts

RBC Digital Choice Business account

Loop business account

All business accounts

Get guidance

Business registration service

Business accounting software

Business POS solution

Business valuation calculator

CRA business account

Find out how to log in easily

How to start a business

The tools you need to succeed

Currency Exchange

Currency Exchange

Compare currencies

Get guidance

XE Money Transfer Review

Get the best rates instantly

Remitly Money Transfer Review

Get a free international money transfer

Explore all accounts

Cards

Card types

Compare cards

Best cards in Canada

Best low interest cards

Best virtual cards

Best travel cards

Best cashback cards

Best business cards

Get guidance

Credit card resources

Credit card FAQ

Credit card payment calculator

KOHO Mastercard

Get $20 with COMPAREWISE

Earn up to 15% cashback

Reward types

Compare cards

Best cashback cards

Best points cards

Best specialty rewards cards

Best travel cards

Get rewards

What is a cash back card?

What are rewards credit cards?

Credit card payment calculator

Tangerine Money Back card

Earn 2% on your purchases

Simplii Cash Back Visa

Earn 10% cash back

Card offers

Compare cards

KOHO prepaid Mastercard

Neo reward card

Tangerine money-back card

AMEX business platinum card

Jeeves business card

Get guidance

What is a cash back card?

What are rewards credit cards?

Credit card payment calculator

KOHO Mastercard

Get $20 with COMPAREWISE

Earn up to 15% cashback

Credit score

Compare cards

Excellent credit

Very good credit

Get guidance

Credit card resources

Credit card FAQ

Credit card payment calculator

Tangerine Money Back card

Earn 2% on your purchases

Earn minimum 5% cashback

Network

Compare cards

Best American Express cards

Best Mastercard cards

Best Visa cards

Get guidance

Credit card resources

Credit card FAQ

Credit card payment calculator

Simplii Cash Back Visa

Earn 10% cash back

Earn up to 15% cashback

Explore all cards

Loans

Personal loans

Compare lenders

Best personal loans

Best bad credit loans

Best debt consolidation

Best installment loans

Best private loans

Best unsecured loans

Get guidance

Personal loan resources

Personal loan lender reviews

Personal loan calculators

How to improve credit score

Boost your score to borrow more

How to maximize tax return

Get more back in taxes this year

Car loans

Compare lenders

Best car leasing

Best car loan refinance

Best secured car loan

Best car title loan

Best unsecured car loan

Get guidance

Car loan resources

Car loan lender reviews

Car loan calculators

Best 7-Seater SUVs in Canada

See pros, cons and more

How to get a free VIN check

Learn about the vehicle's history

Mortgages

Compare rates

Best mortgage rates

Best bridge mortgage rates

Best commercial mortgage rates

Best home equity rates

Best mortgage refinace rates

Best investment property rates

Get guidance

Mortgage resources

Mortgage lender reviews

Mortgage calculators

How to minimize CMHC insurance

Save up to 4% on your home

First Time Homebuyer Program

Access RRSP for downpayment

Business loans

Compare lenders

Best business expansion loan

Best e-commerce business loan

Best equipment financing

Best merchant cash advance

Best start up business loan

Best working capital loan

Get guidance

Business loan resources

Business loan lender reviews

Business loan calculators

How to get business loans

Access extra operating capital

20 reasons to get a loan

Would your business benefit?

Cash advances

Compare lenders

KOHO cash advance

Nyble cash advance

Bree cash advance

Credit building

Credit building

Compare partners

KOHO credit building

Nyble credit building

Neo credit building

Get reports

CreditVerify credit report

Nyble credit report

TransUnion credit report

Loans Canada credit report

PFM Verify credit report

Borrowell credit report

How to boost credit score

Get lower interest rates

How to build business credit

Prepare for business lending

Explore all loans

Insurance

Home insurance

Compare rates

Best home insurance

Best apartment insurance

Best basement suite insurance

Best condo insurance

Best detached home insurance

Best rental insurance

Get guidance

Home insurance resources

Home insurance company reviews

Home insurance calculators

Square One Insurance

Home insurance from $12

Home insurance from $14

Business insurance

Business insurance

Compare rates

Best business insurance

Best errors and omissions insurance

Best office insurance

Best professional liability insurance

Best retail insurance

Best yoga insurance

Get guidance

Business insurance resources

Business insurance company reviews

Business insurance calculator

Business insurance from $19

Business insurance from $20

Life insurance

Compare rates

Best life insurance

Best critical illness insurance

Best disability life insurance

Best mortgage life insurance

Best term life insurance

Best whole life insurance

Get guidance

Life insurance resources

Life insurance company reviews

Life insurance calculator

Term vs whole life insurance

Get the best cover for you

Mortgage vs term insurance

Ensure your family is protected

Pet insurance

Compare rates

Best pet insurance

Best kitten insurance

Best puppy insurance

Best cat insurance

Best dog liability insurance

Get guidance

Trupanion review

Petsecure review

Pet Shield review

Pets Plus Us review

Explore all insurance

Investing

Crypto

Compare

Best crypto apps

Best crypto exchanges

Best crypto wallets

Best crypto predictions

Get Guidance

Crypto resources

Crypto company reviews

Crypto trends and charts

How to earn crypto interest

The basics to get started

Make money trading crypto

Level up your trading game

Stocks

Compare

CIBC Investor's Edge review

Questrade review

How to buy stocks

Get started investing

GICs

Compare

EQ Bank 1-year GIC

Simplii 1-year GIC

Coast Capital 18-month GIC

Tangerine 1.5 year GIC

Best GICs in Canada

Grow your investments

RRSP

Compare

EQ Bank RRSP account

Simplii RRSP account

Tangerine RRSP account

Best RRSPs in Canada

Reach retirement goals

TFSA

Compare

EQ Bank tax-free savings account

Simplii tax-free savings account

Tangerine tax-free savings account

Best TFSAs in Canada

Earn tax-free interest

Gold

Compare

Silver Gold Bull review

How to buy gold

See universal returns

Wills

Compare

Best wills in Canada

Best online wills

Best simple wills

Best living wills

Best joint wills

Best holographic wills

Get Guidance

LegalWills review

Epilogue wills review

Willfull review

FormalWill review

What is a living will

Your questions answered

Estate planning guide

Document last wishes

Explore all investments

Tech

Finance

Compare

Best personal finance apps

Best accounting software

Best tax return software

Best trading platform

Best online brokerage

Business

Compare

Best password manager

Best website builder

Best online brokerage

Best domain registrar

Best web hosting

Best email marketing

Best project management software

Best VPN software

Explore all apps and software

Tools

Calculators

Calculate

Loan interest calculator

Credit card payment calculator

Investment calculator

Net worth calculator

Mortgage calculator

Grade calculator

OSAP calculator

Retirement calculator

Business valuation calculator

All calculators

Get guidance

Date and time calculators

Financial calculators

Student calculators

Converters

Convert

Grams to cups converter

Kg to lb converter

Feet to meters converter

Generators

Generate

Password generator

Phone number generator

Random number generator

Couple name generator

Business name generator

Explore all calculators

Brands

Finance

Compare

Simplii Financial review

National Bank review

Tangerine review

Neo Financial review

Coast Capital review

Loans

Compare

Spring Financial review

Skycap Financial review

Journey Capital review

Coast Capital review

BMO bank review

Homewise review

Insurance

Compare

Square One review

Insurely review

Apollo insurance review

Zensurance review

Foxquilt review

PolicyMe review

PolicyAdvisor review

SecuriGlobe review

Business

Compare

Quickbooks review

Unbounce review

MarketerHire review

Thinkific review

NitroPack review

Marketing

Compare

Rank Math review

Monday.com review

AdCreative.ai review

Campaigner review

Technology

Compare

LastPass review

1Password review

Explore all brands

More

Horoscopes

Compare

Get guidance

Baby names

Compare

Get guidance

Baby girl names

Gender neutral baby names

Net worths

Compare

Elon Musk net worth

Jeff Bezos net worth

Mark Zuckerberg net worth

Larry Ellison net worth

Warren Buffet net worth

Bill Gates net worth

Get guidance

Fashion & retail

Food & beverage

Articles

Learn more

Business finance

Business insurance

Personal finance

Help Centre

Learn more

Glossary

Learn more

Qualifying Rate

What is a qualifying rate?

Qualifying Rate Definition: A qualifying rate or ratio measures what a bank or financial company reviews during the underwriting process and determines the cost of insurance premiums and coverage for an applicant. This rate also determines what an applicant qualifies for, and whether they will be approved for financing when applying for a loan or a credit card.

A debt-to-income ratio is an example of a tool used to determine if a borrower meets the qualifying rate or ratio, which is usually expressed as a percentage and indicates a borrower’s ability to pay off a loan based on their current income, debt, assets, and expenses. It’s an essential factor in deciding whether or not to approve financing.

Ideally, a good debt-to-income ratio should be under 30%, though some lenders prefer a lower percentage.

Jul 30 - comparewise mortgage banner

Other mortgage terms:

comparewise

Most Popular

Browse by category

Didn’t find the information you were looking for?

Send us your questions and we will get back to you.

Get Started

Back to glossary

Car loan?
Personal Loan?

Top deals await you just a short
application away!

Get started