TDSR Explained How It Affects Your Mortgage Eligibility: Bank Rate Comparison Guide
The Total Debt Servicing Ratio (TDSR) limits your total monthly debt repayments to 55% of your gross monthly income, directly determining your mortgage eligibility in Singapore.
Homejourney's bank rates comparison tool helps you navigate TDSR Singapore rules safely, ensuring transparent decisions for home buyers and investors.
What is TDSR and Why Does It Matter for Mortgage Eligibility?
TDSR Singapore is a Monetary Authority of Singapore (MAS) regulation that caps total debt obligations—including home loans, car loans, credit cards, and personal loans—at 55% TDSR limit of your gross monthly income.[1][6][7] This safeguards financial stability amid rising property prices.
For example, with S$10,000 monthly income, your total repayments cannot exceed S$5,500. Existing debts like a S$900 car loan reduce available mortgage capacity significantly.[1]
This cluster article dives deeper into TDSR calculation, its impact on mortgage eligibility TDSR, and bank rate comparisons. It supports our pillar guide on Singapore home financing, offering tactical steps via Homejourney's tools.
Disclaimer: This is general guidance; consult Homejourney Mortgage Brokers for personalized advice. Rates and rules as of 2026.
How TDSR Calculation Works: Step-by-Step
The TDSR calculation formula is: (Total monthly debt obligations / Gross monthly income) × 100% ≤ 55%.[6] Banks assess all debts at stressed interest rates (e.g., 3.5% for home loans).
- Calculate gross income: Include salary, bonuses, commissions (variable income gets 30% haircut).[1]
- List all debts: Home loans, car loans, credit cards (minimum payments + interest-free instalments), student loans.[1]
- Apply stressed rates: Projected at higher rates to test affordability.
- Check against 55%: If over, reduce loan quantum or debts.
HDB buyers face additional MSR limit 30% for HDB/EC loans, capping housing payments at 30% of income regardless of other debts.[1][7]
TDSR vs MSR: Key Differences
| Rule | Applies To | Limit | Includes |
|---|---|---|---|
| TDSR | All properties | 55% total debts | All loans + cards |
| MSR | HDB resale, EC | 30% housing only | Mortgage payments |
Refinancing owner-occupied homes is TDSR-exempt since 2016, subject to bank assessment.[1]
Real-World TDSR Examples: Income vs Borrowing Power
Consider a S$6,000 earner with S$900 car loan + S$500 credit card: Available for mortgage = S$1,400 (after 55% cap minus existing debts).[1] For HDB, MSR limits to S$1,800 even without debts.
- S$10,000 income, no debts: Max mortgage payments S$5,500 → ~S$1.2M loan (at 3% rate, 30-year tenure).
- With variable income: 30% haircut → S$7,000 effective, max S$3,850 repayments.
- Couple S$15,000 joint: S$8,250 total debts allowed.
Use Homejourney's mortgage eligibility calculator for instant TDSR calculation tailored to your scenario.
Bank Rate Comparison: How Rates Impact TDSR Singapore
Lower rates boost borrowing power under TDSR. Compare Homejourney partners: DBS, OCBC, UOC, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank.
SORA-based rates (Singapore Overnight Rate Average) dominate; fixed packages offer stability. Visit Homejourney bank rates for real-time comparisons from all major banks.
SORA influences TDSR stressed calculations. The chart below shows recent interest rate trends in Singapore:
As seen, 3M SORA fluctuated around 2.8-3.2% in late 2025, affecting monthly repayments. Lower SORA = higher loan quantum within 55% TDSR limit.
Improving Mortgage Eligibility Under TDSR Limit 55%
Boost capacity with these actionable steps:
- Pay down debts: Clear credit cards or car loans first—reduces TDSR ratio instantly.
- Time variable income: Use 12-month average; stable jobs preferred.
- Joint applications: Combine incomes (e.g., spouse) but aggregate debts.
- Shorten tenure: Age + tenure ≤ 65-75 years, lowers monthly payments.
- Build credit score: See our guide on Credit Score Impact on Mortgage Approval: Homejourney Benefits .
Prepare docs: Latest payslips, CPF statements, Singpass-ready. Homejourney's multi-bank submission auto-fills via Singpass for faster approvals.
Homejourney: Safe, Trusted Mortgage Tools
Homejourney prioritizes your safety with verified bank rates and eligibility calculators. Submit one application at https://www.homejourney.sg/bank-rates to get offers from DBS, OCBC, UOB, and more.
Track live SORA, compare packages, and connect with our Mortgage Brokers. Search budget-friendly properties at Homejourney property search.
FAQ: TDSR Explained for Singapore Buyers
What is the TDSR limit in Singapore?
TDSR limit 55% caps total debts at 55% of gross income.[6][7]
Does refinancing trigger TDSR?
No, owner-occupiers are exempt.[1]
How does credit card affect TDSR calculation?
Minimum payment + full instalment plans count.[1]
Can self-employed qualify under TDSR Singapore?
Yes, with 30% income haircut on variable portions.[1]
Where to compare bank rates post-TDSR check?
Use Homejourney bank-rates for all partners.
Ready to check your mortgage eligibility TDSR? Start with Homejourney's calculator and link back to our pillar on Singapore mortgages for full coverage. Build trust with transparent tools—your safe property journey begins here.
