TDSR Explained: Boost Mortgage Eligibility & Approval Odds | Homejourney
The Total Debt Servicing Ratio (TDSR) limits your total monthly debt payments to 55% of your gross monthly income, directly determining your mortgage eligibility in Singapore. Understanding TDSR Singapore rules and how to optimize them can significantly increase your borrowing power and approval chances for HDB flats or private properties.
This cluster article dives deep into TDSR calculation, its impact on mortgage eligibility TDSR, and actionable steps to improve your odds. It connects to our pillar guide on Singapore mortgage eligibility for comprehensive coverage. At Homejourney, we prioritize your safety and trust by providing verified tools like our eligibility calculator at https://www.homejourney.sg/bank-rates#calculator.[1][2][4]
What is TDSR and Why the 55% Limit?
TDSR Singapore is a Monetary Authority of Singapore (MAS) regulation ensuring borrowers don't overleverage. It calculates all monthly debt obligations—including mortgages, car loans, personal loans, and credit card minimum payments—against your gross income. The TDSR limit 55% means your total debts cannot exceed 55% of income.[1][2][4][6]
For private properties, TDSR is the key rule. HDB flats and Executive Condominiums (ECs) also require the Mortgage Servicing Ratio (MSR) at 30% of income for housing loans. Banks stress-test at a minimum 4% interest rate for conservatism.[2]
Homejourney makes this transparent: Use our Bank Rates to check real-time impacts from DBS, OCBC, UOB, and more partners.
TDSR Calculation: Step-by-Step Formula
TDSR calculation = (Total Monthly Debt Payments / Gross Monthly Income) × 100. It must stay ≤55%.[3][4]
- Gross Income: Pre-tax salary. Variable components (bonuses, commissions) get a 30% 'haircut' based on 12-month average. Rental income needs a valid tenancy agreement with 6+ months remaining.[2]
- Debts: All obligations. Credit cards: min(3% balance, $50). Use medium-term rates (≥4%) for mortgages.[1][2]
Example Table: Borrowing Capacity by Income (4% Stress Rate, 30-Year Tenure)
| Monthly Income | Max Total Debt (55% TDSR) | Est. Mortgage (No Other Debts) |
|---|---|---|
| $8,000 | $4,400 | ~$860,000 |
| $12,000 | $6,600 | ~$1,290,000 |
| $20,000 (Joint) | $11,000 | ~$2,150,000 |
Calculate yours instantly with Homejourney's TDSR tool at https://www.homejourney.sg/bank-rates#calculator. For HDB upgraders, factor MSR too—mortgage ≤30% income.[1][3]
How TDSR Affects Your Mortgage Eligibility
Mortgage eligibility TDSR caps your loan quantum. A single buyer earning $10,000 with $1,000 car loan might qualify for $1.4M property (after TDSR). Add credit card debt, and it drops.[1][2]
Real Singapore example: A Tampines professional ($9,000 income) with OCBC car loan ($800/month) and 5% credit card balance sees mortgage eligibility shrink from $1.5M to $1.1M condo budget. Joint applicants often double capacity.[1]
TDSR tightened to 55% in Dec 2021 from 60% to curb debt amid high prices. It applies to all loans, including refinancings.[2]
Practical Ways to Improve TDSR and Approval Chances
Boost mortgage eligibility with these vetted steps, tailored for first-time buyers and investors:
- Pay Down Debts: Clear credit cards or car loans first—reduces minimum payments instantly. Aim for zero balance pre-application.[2]
- Add Co-Borrower: Spouse/parent doubles income, shares TDSR. Verify joint eligibility via Homejourney calculator.[1]
- Reduce Variable Income Reliance: Stabilize with fixed salary proof. Banks haircut bonuses 30%.[2]
- Shorten Tenure: Lower monthly payments, but weigh total interest. Max tenure: age 65 or 30 years.[1]
- Time It Right: Apply post-bonus, pre-new debts. Track SORA via Homejourney for rate timing.
Insider tip: Self-employed? Use 24-month average income with audited accounts for better TDSR. Homejourney's Singpass integration auto-fills verified data for faster approvals from DBS, UOB, HSBC.[2]
Submit one application on https://www.homejourney.sg/bank-rates to get offers from 10+ banks securely.
Using Homejourney to Navigate TDSR Safely
Homejourney builds trust with verified tools: Compare rates from DBS, OCBC, UOC, Standard Chartered at Bank Rates . Our eligibility calculator shows TDSR/MSR instantly, helping you search affordable properties at https://www.homejourney.sg/search.
Refinancing? Check LTV (up to 75% under 55yo, no prior loans). Connect with our mortgage brokers for personalized advice—no hard sells, just safety.[1]
Disclaimer: This is general info; consult professionals. Rates as of 2026; MAS rules apply.[4]
FAQ: TDSR Singapore Common Questions
What is the TDSR limit in Singapore?
The TDSR limit 55% caps total debts at 55% of gross income for all property loans.[4][6]
Does TDSR apply to refinancing?
Yes, all new housing loans including refinancings must meet TDSR.[2][4]
How does credit card debt affect TDSR?
Minimum payment (3% balance or $50) is included, so pay off before applying.[1]
Can foreigners improve TDSR eligibility?
Yes, via co-borrowers or debt reduction. See our foreigner guide: Foreigner Mortgage Eligibility Singapore: Homejourney Guide 2026 .
Where to calculate TDSR accurately?
Use Homejourney's free tool at https://www.homejourney.sg/bank-rates#calculator with Singpass for precise results.
Ready to boost your approval? Start with Homejourney's secure calculator and bank comparisons today. For full mortgage mastery, read our pillar: TDSR Explained: How It Affects Your Mortgage Eligibility in Singapore . Your trusted path to property ownership begins here.
