TDSR Explained: How It Affects Your Mortgage Eligibility: Frequently Asked Questions
The Total Debt Servicing Ratio (TDSR) in Singapore caps your total monthly debt payments at 55% of your gross monthly income, directly determining your mortgage eligibility for HDB flats, condos, or private properties.[5][1]
This TDSR Singapore rule, enforced by the Monetary Authority of Singapore (MAS), ensures borrowers avoid over-leveraging amid high property prices. Homejourney prioritizes your safety by offering verified calculators to check your TDSR calculation instantly, helping you make confident decisions in a trusted environment.[1][2]
What is TDSR and Why Does the 55% Limit Matter?
TDSR measures all your monthly debt obligations—including home loans, car loans, credit cards, and personal loans—against your gross income. The TDSR limit 55% prevents excessive borrowing, introduced to stabilize Singapore's housing market after global crises like 2008.[1][2]
Formula: TDSR = (Total monthly debt payments / Gross monthly income) × 100. It must stay ≤55%.[3][5] For example, with $10,000 monthly income, your total debts cannot exceed $5,500. This applies to all residential loans, unlike MSR which is HDB/EC-specific at 30%.[1]
Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator uses this exact TDSR calculation with Singpass integration for precise results, auto-filling your income data securely.
How TDSR Calculation Works: Step-by-Step
Banks assess TDSR using a stressed interest rate (minimum 4%) for conservatism, even if current rates are lower.[2] Gross income excludes employer CPF but includes salary, bonuses (with 30% haircut on variable components averaged over 12 months), and rental income (with haircut and valid tenancy proof).[2]
Credit card minimum payments are the lower of 3% of balance or $50. Existing loans like car or student debts count fully.[1] For joint applicants, combine incomes and debts.
- Calculate gross monthly income (apply haircuts to variables).
- List all monthly commitments at stressed rates.
- Divide total commitments by income; ensure ≤55%.
- Adjust loan tenure or add co-borrower if exceeded.
Use Homejourney's tool at https://www.homejourney.sg/bank-rates to compare DBS, OCBC, UOB rates while simulating TDSR impacts.
TDSR vs MSR: Key Differences for HDB Buyers
HDB/EC buyers face both: MSR limits housing loan to 30% of income; TDSR covers all debts at 55%.[1][3] Private property only needs TDSR. MSR assumes 20% for CPF/living costs, leaving 30% for mortgage.[1]
| Property Type | Key Limit | Applies To |
|---|---|---|
| HDB/EC | MSR 30% + TDSR 55% | New purchases (not refinancing) |
| Private/Condo | TDSR 55% | All loans |
This framework builds on our pillar guide: TDSR Singapore Explained: How It Limits Your Mortgage Eligibility | Homejourney ">TDSR Singapore Explained: How It Limits Your Mortgage Eligibility | Homejourney .
Real-World TDSR Examples: Income vs Borrowing Power
Scenario 1: Single buyer, $8,000 income, $500 car loan, no cards. Max total debt: $4,400 ($8,000 × 55%). Housing allowance: $3,900. At 4% stressed rate, 30-year tenure yields ~$950,000 loan.[2]
Scenario 2: Couple, $15,000 combined, $1,000 existing debts. Max debt: $8,250. Housing: $7,250 → ~$1.77M loan. Add $2,000 credit limit? Minimum $60 payment reduces capacity slightly.[1]
| Monthly Income | No Other Debts Max Loan (30yr, 4%) | With $1,000 Debts Max Loan |
|---|---|---|
| $10,000 | $1.22M | $1.02M |
| $15,000 | $1.83M | $1.53M |
| $20,000 | $2.44M | $2.04M |
*Assumes LTV 75%, age <55. Test yours on Homejourney for personalized results with partners like HSBC, Standard Chartered.
5 Actionable Ways to Improve Your Mortgage Eligibility Under TDSR
- Pay down debts: Clear credit cards or car loans first—reduces commitments instantly.
- Add co-borrower: Spouse/parents boost combined income (e.g., +$5,000 lifts capacity ~$1.2M).
- Shorten tenure: Lower payments fit under 55%, but raises monthly outlay—balance with affordability.
- Prove stable income: Self-employed? Show 2-year audited accounts; variables averaged with haircut.[2]
- Time it right: Refinance post-MOP or when bonuses stabilize. Use Homejourney at https://www.homejourney.sg/bank-rates for multi-bank offers from DBS to Maybank.
Disclaimer: This is general guidance; consult Homejourney Mortgage Brokers for tailored advice. Regulations per MAS as of 2026.[5]
Frequently Asked Questions on TDSR Singapore
Q1: Does TDSR apply to refinancing?
A: Yes, all new housing loans/refinancings must meet TDSR 55%.[1][5] MSR exempt for owner-occupied HDB/EC refinancing.
Q2: How are bonuses/commissions treated in TDSR calculation?
A: 30% haircut on variable income, averaged over 12 months. Rental: Valid lease, haircut applied.[2]
Q3: Can I exceed TDSR with good credit?
A: No, 55% is mandatory; banks cannot approve higher. LTV (55-75%) adds another layer.[1]
Q4: What's the impact of age on TDSR mortgage eligibility?
A: Tenure capped at age 65 (banks) or 75 (HDB). See details in Singapore Mortgage Age Limits: Max Tenure & Homejourney Benefits ">Singapore Mortgage Age Limits: Max Tenure & Homejourney Benefits .
Q5: How does Homejourney help with TDSR?
A: Instant calculator, Singpass applications, multi-bank quotes (UOB, CIMB, etc.). Start at https://www.homejourney.sg/search for budget-matched properties.
Next Steps: Secure Your Loan Safely with Homejourney
Verify your mortgage eligibility TDSR today via our trusted platform. Compare rates from all major banks, apply once for multiple offers, and explore properties at Projects . Homejourney ensures transparency and safety—your confident property journey starts here. Dive deeper in our pillar: TDSR Singapore Explained: How It Limits Your Mortgage Eligibility | Homejourney ">TDSR Singapore Explained: How It Limits Your Mortgage Eligibility | Homejourney .
