Apply to Consolidate Your Debt →
Key qualification requirements
- Credit score: scores over 660 have the best approval odds; many banks want 680+ for a competitive rate.
- Debt-to-income (DTI) ratio: ideally under 36%. If your debt payments exceed about 40% of income, lenders often decline or offer worse terms.
- Steady income: proof you can repay, from employment, pension or benefits.
- Canadian residency: aged 18 or older with an active Canadian bank account.
Documents you’ll need
- Proof of income (pay stubs or an employer letter)
- Statements and current balances for the debts you’re consolidating
- Government-issued ID
- Proof of address
- Bank account details
Understanding the debt-to-income ratio
Your DTI is the share of your gross monthly income that goes toward debt payments. Lenders use it to judge affordability. To calculate yours, divide your total monthly debt payments by your gross monthly income. Lowering this number — by paying down balances — is the most effective way to qualify.
What if your credit score is lower?
Many lenders consider income, affordability and overall stability alongside your credit history, so borrowers with lower scores can still qualify — often at a higher rate. Adding a co-signer or offering collateral can also help.
Steps to qualify
- Check your credit report and fix any errors.
- Calculate your DTI and pay down small balances if you can.
- Gather your income and debt documents.
- Compare lenders to find ones that fit your profile.
- Apply and review the rate, term and total cost.
Frequently asked questions
What credit score do I need? 660+ gives the best odds; 680+ unlocks competitive bank rates, but some lenders go lower.
Can I qualify with high debt? If your DTI is very high, you may need to reduce debt first or explore alternatives like credit counselling.
Will checking offers hurt my credit? Pre-qualification is usually a soft check; a full application may be a hard inquiry.
See if you qualify. Compare consolidation loans →
Disclaimer: LoanWave.ca is an affiliate / comparison website. We are not a lender and do not provide loans. We may earn a commission from partners. Rates and terms are set by lenders. Informational content only, not financial advice.