TDSR Explained: How It Affects Your Mortgage Eligibility | Homejourney FAQ
The Total Debt Servicing Ratio (TDSR) in Singapore limits your total monthly debt repayments to 55% of your gross monthly income, directly determining your mortgage eligibility. This rule, enforced by the Monetary Authority of Singapore (MAS), ensures you don't overborrow and maintains financial stability amid high property prices.
At Homejourney, we prioritize your safety by helping you understand TDSR calculation and its impact through our free eligibility tools. This cluster article dives into TDSR Singapore specifics, linking back to our pillar guide on TDSR Explained: How It Affects Your Mortgage Eligibility in Singapore for full mortgage education.[1][2][5]
What is TDSR and Why Does It Matter for Mortgage Eligibility?
TDSR Singapore calculates all your monthly debt obligations—including home loans, car loans, credit cards, personal loans, and student loans—against your gross income. Banks use a stress-test interest rate (minimum 4% for residential properties) to simulate higher rates, ensuring long-term affordability.[2][5]
The TDSR limit 55% was tightened from 60% in December 2021 to curb household debt. For HDB flats and Executive Condominiums (ECs), the Mortgage Servicing Ratio (MSR) caps housing payments at 30% of income, whichever is lower.[1][2]
Real example: A couple earning S$10,000 monthly with a S$900 car loan and S$500 credit card balance has only S$4,100 left for a new mortgage after TDSR (55% = S$5,500 total debt).[1]
Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator instantly shows your mortgage eligibility TDSR impact, using Singpass for accurate data.
How TDSR Calculation Works: Step-by-Step
To compute TDSR calculation:
- Gross Monthly Income: Pre-tax salary, excluding CPF. Variable income (commissions, bonuses) gets a 30% "haircut" based on 12-month average.[2]
- Total Debt Obligations: All repayments, including proposed new loan, at stress-tested rates.[1][2]
- TDSR Ratio: (Total Debts / Gross Income) ≤ 55%.
Example Table: Borrowing Capacity by Income (No Existing Debts, 4% Stress Rate, 30-Year Loan)
| Monthly Income (S$) | Max Total Debt (55% TDSR) | Max Mortgage (Approx.) |
|---|---|---|
| 6,000 | 3,300 | ~S$600,000 |
| 10,000 | 5,500 | ~S$1,000,000 |
| 15,000 (Joint) | 8,250 | ~S$1,500,000 |
With existing S$1,000 debts, a S$10,000 earner drops to ~S$800,000 mortgage.[1][2] Use Homejourney's tool at https://www.homejourney.sg/bank-rates to compare DBS, OCBC, UOB rates and test scenarios.
TDSR vs MSR: Key Differences for HDB Buyers
MSR (30% limit) applies only to HDB resales/ECs, focusing solely on housing costs. TDSR is broader, covering all debts.[1][2][5]
Insider tip: For HDB upgraders in areas like Punggol or Sengkang, pay off car loans first—many buyers overlook how a S$800/month Toyota loan slashes eligibility for a S$800,000 5-room flat.[1]
Refinancing owner-occupied homes is TDSR-exempt since 2016, but banks still assess credit.[1] Check trends affecting rates:
The chart below shows recent interest rate trends in Singapore:
As seen, SORA fluctuations impact stress-tested calculations—track live on Homejourney.[2]
How to Improve Your Mortgage Eligibility Under TDSR
Boost your mortgage eligibility TDSR with these actionable steps:
- Reduce Debts: Pay off credit cards (minimum payments count fully) or renovate loans. Aim to free 10-20% more capacity.[1]
- Prove Stable Income: Self-employed? Submit 2 years' IRAS NOAs. Variable income earners, average 12 months.[2]
- Time Bonuses: Include recent CPF bonuses, but expect haircuts.
- Joint Applications: Couples can double income, e.g., S$8,000 + S$7,000 = S$8,375 max debt.[2]
- Assets as Income: Eligible investments (with haircuts) over 48 months.[2]
Prepare docs: Payslips, CPF statements, debt proofs. Homejourney's multi-bank submission via Singpass auto-fills for DBS, OCBC, UOB, HSBC, Standard Chartered—get offers fast in a trusted process.如何确定你的房贷资格：使用Homejourney申请的好处
Disclaimer: This is general info; consult Homejourney brokers or banks for personalized advice. Regulations per MAS as of 2026.[5]
Frequently Asked Questions (FAQ)
1. What is the TDSR limit in Singapore?
TDSR limit 55% caps total debts at 55% of gross income. HDB/ECs also follow 30% MSR.[1][2][5]
2. Does TDSR apply to refinancing?
No for owner-occupiers since 2016, but credit checks apply. Use Homejourney at https://www.homejourney.sg/bank-rates to compare.[1]
3. How does credit card debt affect TDSR?
Full minimum payments count, even interest-free plans. Pay down to boost eligibility.[1][2]
4. Can foreigners qualify under TDSR?
Yes, same 55% limit, but lower LTV. See our guide: Foreigner Mortgage Eligibility Singapore: Complete 2026 Guide via Homejourney .[5]
5. Where can I calculate my TDSR?
Instantly on Homejourney's calculator: https://www.homejourney.sg/bank-rates#calculator. Search properties in budget via https://www.homejourney.sg/search.
Trust Homejourney for verified, transparent tools—submit one app to top banks like Maybank, CIMB, RHB. Start safely today at our bank rates page and link back to the full pillar for more.[2]
