TDSR Explained: Boost Mortgage Eligibility & Approval Odds | Homejourney
TDSR Singapore caps your total debt repayments at 55% of gross monthly income, directly limiting mortgage eligibility TDSR for home loans. This total debt servicing ratio rule from MAS ensures responsible borrowing amid high property prices.
Homejourney prioritizes your safety by verifying data transparently, helping you calculate TDSR calculation accurately via our tools. This cluster dives into TDSR Explained How It Affects Your Mortgage Eligibility: How to Improve Approval Chances, linking to our pillar on Singapore mortgage eligibility for full coverage.
What is TDSR and Why Does It Matter in Singapore?
The total debt servicing ratio (TDSR) measures all your monthly debt payments—including mortgages, car loans, credit cards—against gross income, capped at TDSR limit 55%.[1] Introduced by MAS in 2013, it prevents over-borrowing, vital in Singapore where housing forms a big part of household wealth.[1]
For HDB buyers, MSR (30% cap on housing loans) applies alongside TDSR.[1] Banks stress-test at a minimum 4% interest rate for realism, even if current rates are lower.[1] Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator factors this in instantly.
TDSR Calculation: Step-by-Step Breakdown
TDSR calculation = (Total monthly debt obligations / Gross monthly income) × 100. Must stay ≤55%.[1]
Gross income excludes CPF contributions; variable pay (bonuses, commissions) gets a 30% haircut, averaged over 12 months.[1] Rental income needs a tenancy agreement with 6+ months left, also haircut-applied.[1]
Real Singapore Example: HDB Buyer Scenario
Take a couple earning S$8,000/month combined (fixed S$6,000 + variable S$2,000 averaged post-30% haircut = S$7,400 assessable).[1] Existing car loan: S$800/month. New HDB loan at 4% stress rate: payment calculated via PMT formula.
Max total debt: S$7,400 × 55% = S$4,070. After car loan, S$3,270 left for mortgage—affording ~S$650,000 HDB flat (25-year tenure).[1] Use Homejourney's tool at https://www.homejourney.sg/bank-rates for your numbers.
| Monthly Income | Max Debt (55% TDSR) | Sample Mortgage Capacity (4% rate, 25 yrs) |
|---|---|---|
| S$5,000 | S$2,750 | S$450,000 |
| S$10,000 | S$5,500 | S$900,000 |
| S$15,000 | S$8,250 | S$1.35M |
*Assumes no other debts; actuals vary by bank.[1] Homejourney verifies with Singpass for precision.
How TDSR Affects Your Mortgage Eligibility
High TDSR blocks loans even with steady income—e.g., credit card balances count at minimum payments.[1] Self-employed face stricter haircuts; foreigners see tighter rules (see Foreigner Mortgage Eligibility Singapore: Complete 2026 Guide ).[1]
TDSR tightened to 55% from 60% in 2021 to cool prices, reducing borrowing power.[1] For refinancing, existing loans count fully, often requiring debt payoff first.[3]
Compare rates from DBS, OCBC, UOB, HSBC at https://www.homejourney.sg/bank-rates—Homejourney submits one app to all for best offers via Singpass.
7 Actionable Ways to Improve TDSR and Approval Chances
Boost mortgage eligibility TDSR with these steps, tailored for Singapore buyers:
- Pay down debts: Clear credit cards, personal loans—frees TDSR space fast.[1]
- Reduce credit limits: Banks use 5% of limits if unused; request cuts.[1]
- Time variable income: Apply post-bonus for higher 12-month average.[1]
- Prove rental income: Secure 6+ month lease; add to assessable income.[1]
- Joint applications: Combine incomes (spouse/kids over 21) without ABSD if decoupled.
- Shorten tenure: Lowers monthly payments, fitting under 55%.[2]
- Get AIP early: Via Homejourney—locks eligibility pre-purchase.
Track SORA trends for timing: Submit via Homejourney for multi-bank quotes from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank.
Homejourney: Your Safe Path to Mortgage Success
Homejourney builds trust with verified tools—calculate TDSR instantly, auto-fill via Singpass, get offers from 10+ banks.[1] Unlike risky apps, we prioritize security and feedback-driven updates.
Search budget-fit properties at https://www.homejourney.sg/search; explore projects at Projects . For full eligibility guide, see our pillar: TDSR Explained: How It Affects Mortgage Eligibility | Homejourney FAQ .
FAQ: TDSR Singapore Common Questions
Q: What is the TDSR limit 55% exactly?
A: Total debts ≤55% of gross income; MSR 30% for HDB/EC.[1]
Q: Does CPF count in TDSR calculation?
A: No, only gross pre-CPF income; employer contributions excluded.[1]
Q: Can I improve TDSR for condo purchase?
A: Yes, pay debts, prove extras—use Homejourney calculator for sims.
Q: TDSR for self-employed?
A: Heavier haircuts on variable income; need 2-year accounts.[1]
Q: How to check mortgage eligibility TDSR now?
A: Free at https://www.homejourney.sg/bank-rates#calculator.
Disclaimer: Not financial advice; consult professionals. Rates as of 2026; MAS rules apply.[1][7]
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