TDSR Explained: How It Affects Your Mortgage Eligibility: Frequently Asked Questions
The Total Debt Servicing Ratio (TDSR) caps your total monthly debt repayments, including mortgages, at 55% of your gross monthly income in Singapore, directly determining your mortgage eligibility.[1][2][4]
This cluster article breaks down TDSR Singapore rules with real examples, calculations, and actionable steps. For our comprehensive pillar guide, see TDSR Singapore Explained: Mortgage Eligibility Guide | Homejourney. At Homejourney, we prioritize your safety with verified tools like our eligibility calculator at https://www.homejourney.sg/bank-rates#calculator.
What is TDSR and Why Does It Matter for Mortgage Eligibility?
TDSR, enforced by the Monetary Authority of Singapore (MAS), ensures borrowers don't overextend financially.[4] It calculates as (Total Monthly Debt Obligations / Gross Monthly Income) x 100%, capped at 55%.[2][3]
TDSR Singapore affects all property loans—HDB, EC, private—from banks like DBS, OCBC, UOB.[2] Unlike MSR (30% for HDB/EC only), TDSR includes car loans, credit cards, and student loans.[1][3]
At Homejourney, calculate your mortgage eligibility TDSR instantly using our free tool. It auto-fills via Singpass for accuracy, helping you make confident decisions in a trusted environment.
TDSR Calculation: Step-by-Step with Real Singapore Examples
To compute TDSR: Sum all monthly debts (mortgage + others), divide by gross income (including your CPF), multiply by 100%.[3] Banks stress-test at 3.5% interest over 30 years or remaining tenure.[1]
- List debts: e.g., S$800 car loan, S$300 credit card minimum, proposed S$2,500 mortgage.
- Total debts: S$3,600.
- Gross income: S$8,000.
- TDSR: (3,600 / 8,000) x 100% = 45% (passes 55% limit).[3]
For HDB buyers in areas like Punggol, MSR caps housing at 30% first (S$2,400 max), then TDSR applies.[1][2]
Use Homejourney's mortgage eligibility calculator for precise TDSR calculation.
TDSR vs Borrowing Power Table (S$ Income Levels, No Other Debts)
| Monthly Income | Max TDSR (55%) | Est. Mortgage (30yr, 3% rate) |
|---|---|---|
| S$5,000 | S$2,750 | S$650,000 |
| S$10,000 | S$5,500 | S$1.3M |
| S$15,000 (Joint) | S$8,250 | S$1.95M |
Examples based on MAS guidelines; actuals vary by bank assessment.[1][4] Joint incomes boost eligibility—e.g., couple earning S$12,000 can afford S$700K+ HDB in Yishun.
How TDSR Limits Your Home Loan: Common Scenarios
With S$10,000 income and S$1,000 existing debts, max mortgage repayment is S$4,500 (55% - 10%).[1] This equates to ~S$1.1M loan at current rates.
Self-employed? Only 70% of variable income (e.g., commissions) counts, averaged over 12 months.[3] HDB upgraders from S$400K Tampines flat face tighter limits if retaining rental income partially.
Homejourney's bank rates page compares DBS, OCBC, UOB, HSBC—submit one app via Singpass for multi-bank offers, all TDSR-compliant.
TDSR Exemptions and Special Cases
Owner-occupiers refinancing are exempt from TDSR since 2016—just meet bank credit checks.[1][2] Investment properties may qualify above 55% with MAS approval (rare).[2]
HDB direct loans skip TDSR but follow MSR and own limits.[2] No exemptions for new buys.
How to Improve Your TDSR for Better Mortgage Eligibility
Boost total debt servicing ratio headroom with these steps:
- Pay down debts: Clear car/credit card loans first—e.g., reduce S$1,000 debts to unlock S$200K more borrowing.[3]
- Increase income: Add spouse's salary or stabilize variable pay via 12-month proof.
- Extend tenure: Up to age 65/70 lowers monthly outgo (e.g., 25 vs 30 years).[1]
- Larger downpayment: 25%+ via CPF/cash reduces loan size.
- Time it right: Refinance exempt if owner-occupier.
Track SORA impacts on repayments. The chart below shows recent interest rate trends in Singapore:
Rates stable around 3% support higher loans; use Homejourney for live tracking.
Pro tip: First-time buyers in Jurong East—pre-check TDSR on Homejourney before viewing via property search. Connect with our mortgage brokers for personalized advice.
Frequently Asked Questions (FAQs)
Q1: What is the TDSR limit in Singapore?
55% of gross monthly income for all debts including mortgages.[1][2][4]
Q2: Does TDSR apply to HDB loans?
Yes for bank loans (with MSR); no for direct HDB loans.[2][3]
Q3: How does TDSR affect refinancing?
Owner-occupiers exempt; just pass bank assessment.[1]
Q4: What's a good TDSR level?
30-40% for prudence, though limit is 55%.[3]
Q5: Can I exceed TDSR?
Only exceptional cases with MAS nod—rare for new loans.[2]
Disclaimer: This is general info per MAS/HDB as of 2026. Consult professionals; Homejourney verifies data for trust. Not financial advice.
Ready to check your TDSR explained how it affects your mortgage eligibility? Visit https://www.homejourney.sg/bank-rates for safe, instant calculations and multi-bank applications. Explore properties at https://www.homejourney.sg/search within your budget. For credit tips, see Credit Score Impact on Mortgage Approval: Homejourney Benefits.
