Figure by which a mortgage lender determines the maximum mortgage amount a particular home buyer can afford.

This term may be used more generally to refer to any kind of loan or credit decision. It is used when taking into account the ability to pay both current and future debt obligations. The specific comparison constituting the ratio is typically between loan repayment installments and the applicant's gross and net cash-flows, and total and liquid assets. Examples of types of qualifying ratios include back end ratios and front end ratios.