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A funding ratio, also called an efficiency ratio or pull-through rate, is the percentage of mortgage applications a broker or brokerage submits to lenders that actually fund. It is calculated as deals funded ÷ deals submitted, and lenders track it as one measure of how well-qualified and complete a broker’s submissions tend to be.
A high funding ratio tells a lender that a broker’s files are generally well-qualified before submission — fewer declines, fewer withdrawn applications, less wasted underwriting capacity. A low ratio can mean files are being submitted to multiple lenders at once, or that files are not being properly qualified before submission.
Some lenders factor funding ratio into how they prioritize a broker’s files or engage with that broker’s BDM, though the specific weight it carries varies by lender and is not a standardized industry figure.
Funding ratio = Deals funded ÷ Deals submitted
Not the same as approval rate: a deal can be approved and still not fund — a client may withdraw, choose another lender, or the deal may collapse for reasons unrelated to underwriting.
Tracked at the brokerage and individual level: both the mortgage brokerage and the individual mortgage agent, broker, or associate submitting files can have their own funding ratio with a given lender.
Influenced by the broker channel relationship: lenders in the broker channel may use funding ratio, alongside volume, when deciding how much underwriting flexibility or turnaround priority to extend to a brokerage.
A quality signal, not a guarantee: a strong funding ratio reflects submission discipline but does not override a lender’s file-by-file credit decision under OSFI Guideline B-20.
A brokerage reviews its submissions to one lender over a quarter:
42 ÷ 50 = 0.84, or 84%.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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