If you're planning to buy a property in Singapore, one of the first questions is: how much can you actually borrow?
This is determined by two key rules - TDSR (Total Debt Servicing Ratio) and MSR (Mortgage Servicing Ratio) - which limit your monthly loan repayments based on your income and existing debts.
In general, TDSR caps total debt at 55%, while MSR caps housing loans at 30% of your income. Understanding how these rules work helps you avoid loan rejection and plan your purchase with confidence.
What Is TDSR (Total Debt Servicing Ratio) in Singapore
Total Debt Servicing Ratio (TDSR) in Singapore is a key framework used by banks to determine how much you can borrow for a private property loan in Singapore. It determines your maximum home loan based on your income and all existing debt obligations (such as car loan, credit cards, personal loans, etc).
Under TDSR, financial institutions must ensure that your total monthly debt repayments - including your new housing loan - do not exceed a fixed percentage of your gross monthly income (TDSR Limit). This helps prevent over-leveraging and ensures borrowers remain financially sustainable.
In Simple Terms: What TDSR Means
In simple terms, TDSR limits how much of your income can be used to repay all your debts, including your home loan, car loan, credit cards, and other financial commitments.
TDSR Singapore: Key Rules at a Glance
- TDSR limit: 55% of gross monthly income
- Applies to: All property loans (private property and HDB bank loans)
- Includes: All existing debts (home loans, car loans, credit cards, personal loans, etc.)
- Interest rate floor: 4% (residential) / 5% (non-residential)
- Variable income: Only 70% of variable income is recognised
- Introduced: TDSR was implemented in June 2013 to ensure prudent borrowing
What is the Current TDSR Limit In Singapore
The current TDSR limit in Singapore is 55% of a borrower’s gross monthly income. This means your total monthly debt obligations — including your new home loan — cannot exceed 55% of your income. This was set by MAS on 16 December 2021.
→ In short: You can only use up to 55% of your income to repay all debts.
Planning to Buy a Private Property?
While TDSR determines how much you can borrow, it is only one part of the overall home buying process. If you're planning your purchase, you may refer to our guide on costs, timeline and process of buying private property in Singapore to better understand the full process, costs, and financing considerations.
How TDSR Is Calculated in Singapore
TDSR is calculated by dividing your total monthly debt obligations by your gross monthly income. This includes your new home loan as well as all existing financial commitments.
TDSR Formula
Under MAS guidelines, your TDSR must not exceed 55% for a property loan to be approved.
What Counts Towards TDSR
When calculating TDSR, banks take into account all existing debt obligations, not just your housing loan.
- Existing home loans
- Car loans
- Credit card minimum payments
- Personal loans
- Student loans
- Any other outstanding financial commitments
These obligations are combined with your proposed home loan to determine whether you meet the TDSR threshold.
TDSR Calculation Example
Example:
• Fixed monthly income: $6,000
• Variable income: $2,000/month (bonuses, commissions)
Step 1: Adjust your income based on TDSR rules (including 70% of variable income)
Total allowable monthly debt obligations under TDSR:
[$6,000 + (70% × $2,000)] × 55% = $4,070
Step 2: Add up your existing monthly debt obligations, for example:
• Car loan: $800/month
• Credit card minimum payments: $270/month
Step 3: Calculate your remaining allowable mortgage repayment:
$4,070 − ($800 + $270) = $3,000
This means you can afford a property loan with monthly repayments of up to $3,000, based on TDSR requirements.
TDSR Interest Rate Floor (Stress Test Rate)
When assessing your loan eligibility, banks do not use the actual interest rate of your loan. Instead, they apply a stress test interest rate to ensure you can afford repayments even if rates increase.
- Residential properties: 4%
- Non-residential properties: 5%
This means your loan affordability is calculated using a higher assumed rate, which may reduce the maximum loan amount you qualify for.
How Variable Income Affects TDSR in Singapore
Banks treat variable income (such as bonuses, commissions, or freelance earnings) more conservatively than fixed salary when assessing loan eligibility.
For TDSR calculations, only 70% of your average variable income is recognised. This ensures borrowers are not over-leveraged based on inconsistent earnings.
For example, if your variable income is $2,000 per month, only $1,400 will be included in your TDSR calculation — as illustrated in the example above.
Who Does TDSR Apply To
In Singapore, TDSR applies to all residential property loans and commercial property loans (when the borrower is an individual) granted by financial institutions, including:
- Private residential property purchases
- Investment property loans
- Refinancing of existing property loans (subject to conditions)
- HDB flat purchases using bank loans (subject to both MSR and TDSR limits)
For HDB flat purchases using bank loans, both MSR and TDSR apply - but MSR is typically the tighter constraint that determines how much you can borrow.
It applies to both salaried and self-employed borrowers, and includes all outstanding debt obligations when assessing loan eligibility.
TDSR Exemptions in Singapore: When Does TDSR Not Apply?
Think TDSR rules apply to every home loan? Not quite.
Certain property loans in Singapore may be exempt from TDSR, particularly refinancing cases, short-term bridging loans, and specific equity withdrawal scenarios — subject to conditions set by financial institutions.
There are specific situations where exemptions apply, and understanding them can open up more flexible financing options. Many homeowners and investors overlook these exceptions, missing out on opportunities to refinance or borrow under better terms. Don’t let that be you.
TDSR Exemption Scenarios
The TDSR rules allow exemptions in these scenarios:
- Refinancing of owner-occupied property loans
- Refinancing of investment property loans, provided the borrower:
- Commits to a debt reduction plan with their financial institution
- Agrees to repay at least 3% of the outstanding balance within 3 years
- Meets the financial institution's credit assessment
- Bridging Loans or Loans Secured by a Pool of Collateral (Including Property) that will be repaid within 6 months
- Mortgage Equity Withdrawal Loan — where the loan-to-value ratio, combined with other loans secured on the same property, doesn't exceed 50%
Why TDSR Exemptions Matter
Understanding these exemptions can help you structure your financing more effectively - especially when refinancing or managing multiple properties.
Many borrowers overlook these options and miss opportunities to secure better loan terms or unlock additional liquidity.
Not Sure If TDSR Applies to You?
TDSR rules can vary depending on your income type, property, and existing loans - especially if you have variable income or are refinancing.
Get a personalised assessment to find out:
• How much you can actually borrow
• Whether any TDSR exemptions apply to your case
• How to structure your loan for better approval chances
What Is MSR (Mortgage Servicing Ratio) in Singapore
If you're planning to buy an HDB flat or Executive Condominium (EC), MSR - not TDSR - is the key rule that determines how much you can borrow. The Mortgage Servicing Ratio (MSR) is the percentage of a borrower’s gross monthly income that can be used to repay housing loan instalments.
Unlike TDSR, which includes all debt obligations, MSR focuses only on your property loan - making it the primary constraint for HDB and EC purchases.
Many first-time buyers and even some seasoned homeowners do not know this, and resulting in surprise loan rejections or lower-than-expected loan approvals.
What is the Current MSR Limit in Singapore
The current MSR limit is 30% of a borrower’s gross monthly income.
This means your monthly housing loan repayment cannot exceed 30% of your income.
In simple terms: You can only use up to 30% of your income to repay your home loan.
Who Does MSR Apply To
MSR applies to housing loans taken for:
- HDB flat purchases
- Executive Condominiums (ECs) still within their Minimum Occupation Period (MOP) - View our EC eligibility and financing rules for more details.
This applies whether you are taking a bank loan or an HDB loan.
Note: If you take a loan directly from HDB (HDB concessionary loan), TDSR does not apply. However, the MSR limit of 30% still applies, meaning your monthly loan repayment cannot exceed 30% of your income.
For bank loans on HDB flats, both MSR and TDSR apply - but MSR is typically the stricter limit that determines your maximum loan amount. Some banks may still take MSR into consideration for refinancing HDB loans.
How Is MSR Calculated
MSR is calculated based on your gross monthly income and applies only to your housing loan repayment.
MSR Formula
As with TDSR, banks apply a conservative approach to variable income assessment - only 70% of variable income is considered.
MSR Interest Rate Floor (Stress Test Rate)
Similar to TDSR, MSR calculations are based on a stress test interest rate, not the actual rate offered by banks.
- MSR interest rate floor: 3%
This ensures that borrowers remain financially stable even if interest rates increase.
Planning To Take A Loan For Your HDB Flat?
MSR directly affects how much you can borrow - but choosing the right loan matters just as much. Understand your options and avoid costly mistakes:
- HDB loan vs bank loan - which is better for you
- Latest HDB bank loan rates & packages
- Key eligibility rules and approval tips
TDSR and MSR Calculator Singapore - Estimate Your Home Loan Limit
The LoanSaver TDSR and MSR calculator estimates your monthly repayment limit and maximum home loan amount based on your income, existing debt obligations and property type. It applies the current 55% TDSR limit and, where relevant, the 30% MSR limit, using a 4% mortgage stress-test rate for this estimate.
For two borrowers, we use an Income-Weighted Average Age (IWAA) to estimate your maximum loan tenure.
Borrower Details
Borrower 1
Borrower 2
Monthly Variable Income - Includes bonuses, allowances, commissions, and any other variable fees received. Note that variable income is recognized at 70% for this estimate.
Monthly Debt Obligations - Include car loans, personal loans, credit card installments, and existing property loan repayments.
Input Parameters Used
What This Means for Your Home Loan Eligibility?
Want to confirm your actual borrowing limit?
Knowing your TDSR and MSR limits is just step one. To get an exact picture of your maximum property loan, let LoanSaver do the heavy lifting. We will analyse your income, age, and existing debts against current LTV limits to unlock the most competitive bank loan options for your dream home.
* Results are estimates only and are not an offer of financing. Your actual loan amount may vary depending on the bank’s assessment, LTV limits, property valuation, income documents, credit profile, CPF usage, loan tenure and prevailing regulations.
Frequently Asked Questions About TDSR and MSR in Singapore
Here are answers to common questions home buyers ask about TDSR and MSR in Singapore.
Related Guides and Calculators:
Deep dive and explore our comprehensive guides on how your loan eligibility is calculated:
🏡 How LTV Affects Your Home Loan Amount →
Understand how property value and loan profile tiers limit your maximum loan.
💰 Maximum Home Loan Eligibility in Singapore →
Get a clear picture on the factors that affect your maximum home loan, as well as tips for increasing loan eligibility.
👥 Income Weighted Average Age (IWAA) →
Find out how your and your co-borrower’s age affects loan tenure and approval.
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