TDSR Explained How It Affects Your Mortgage Eligibility: How to Improve Approval Chances
TDSR Singapore caps your total monthly debt repayments at 55% of gross income, directly limiting mortgage eligibility for home loans. This Total Debt Servicing Ratio rule from MAS ensures financial prudence but can surprise buyers with existing debts like car loans or credit cards. Homejourney helps you navigate TDSR calculation with instant calculators and multi-bank comparisons for safer decisions.
This cluster article dives into TDSR explained how it affects your mortgage eligibility: how to improve approval chances, building on our pillar guide to Singapore home loans. First-time buyers and upgraders trust Homejourney for verified tools that prioritize transparency and user safety.
What is TDSR and the 55% Limit?
The Total Debt Servicing Ratio (TDSR) measures all your monthly debt obligations against gross income, capped at TDSR limit 55% by MAS for new housing loans.[4] It includes home loans, car loans, personal loans, credit cards (even interest-free plans), and student loans—not just property debt.[1][2] Unlike MSR (30% for HDB/EC housing costs only), TDSR covers everything, making mortgage eligibility TDSR stricter for leveraged buyers.[2]
Enforced since 2013 and tightened to 55% in December 2021, TDSR prevents over-borrowing amid rising property prices.[2] For variable income (commissions, bonuses), banks apply a 30% haircut, using 70% of averaged 12-month earnings.[1][2] Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator factors this in instantly via Singpass for accurate TDSR Singapore assessments.
TDSR Calculation: Step-by-Step with Examples
TDSR calculation is: (Total monthly debt repayments / Gross monthly income) x 100 ≤ 55%.[2][4] Banks assess at current rates plus a stress test buffer.
Example 1: S$10,000 income, no variable component. Max debt: S$5,500. If car loan (S$900) + credit card (S$500), only S$4,100 left for mortgage.[1]
Example 2: S$6,000 income with S$900 car + S$500 credit card + S$500 reno loan. Available: S$1,400 (after 55% = S$3,300 minus debts). For HDB, MSR caps at S$1,800, but TDSR binds tighter.[1][2]
| Monthly Income | No Debts (55% TDSR) | With S$2,000 Debts |
|---|---|---|
| S$6,000 | S$3,300 | S$1,300 |
| S$10,000 | S$5,500 | S$3,500 |
| S$15,000 (joint) | S$8,250 | S$6,250 |
Use Homejourney's tool at https://www.homejourney.sg/bank-rates to simulate your TDSR calculation across DBS, OCBC, UOB, HSBC, and more.
How TDSR Affects Your Mortgage Eligibility
TDSR directly slashes mortgage eligibility TDSR by factoring all debts, often leaving less for housing than expected.[1] HDB buyers face dual TDSR + MSR (30%), e.g., S$6,000 earner maxes at S$1,800 housing despite TDSR room.[1] Private property? Pure TDSR, but LTV limits (75% for first-timers) compound it.
Exemptions: Owner-occupier refinancing since 2016 skips TDSR, based on bank credit alone.[1] Variable income earners see tighter caps. Credit Bureau Singapore shares data, so pay on time to avoid flags.[1] Homejourney verifies your profile safely, connecting you to partners like Standard Chartered and Maybank.
Practical Ways to Improve TDSR and Approval Chances
Boost mortgage eligibility TDSR with these actionable steps:
- Reduce existing debts: Pay off credit cards or car loans first. E.g., clearing S$1,000 monthly frees capacity.[2]
- Increase downpayment: 25%+ cash reduces loan size, lowering repayments.[2]
- Extend tenure: Up to age 65/70 spreads payments (e.g., 30-year vs 25-year).[1]
- Joint application: Combine incomes, but aggregate debts too.
- Time variable income: Wait for 12-month average to rise; avoid big debts pre-application.
Insider tip: For HDB upgraders in areas like Punggol, clear reno loans early—common pitfall. Prep docs: Latest payslips, CPF statements, Singpass-ready. Homejourney's multi-bank submission at https://www.homejourney.sg/bank-rates gets offers from CIMB, RHB, and others fast, auto-filling via Singpass.
The chart below shows recent interest rate trends in Singapore:
As seen, SORA fluctuations impact repayments—track via Homejourney for optimal timing. Aim for TDSR under 40% for prudence, even if 55% allowed.[2]
Homejourney: Your Trusted Partner for TDSR Success
Homejourney prioritizes safety with verified calculators showing exact TDSR limit 55% impact. Compare live rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank at https://www.homejourney.sg/bank-rates. One application yields multiple offers; our brokers guide without pressure.
Search budget-fit properties at https://www.homejourney.sg/search or explore Projects . For post-purchase, Aircon Services . See related: TDSR Explained: How It Affects Mortgage Eligibility FAQs | Homejourney and Credit Score Impact on Mortgage Approval: Improve Chances | Homejourney .
FAQ: TDSR Singapore Common Questions
Q: What is a good TDSR level?
A: 30-40% is prudent, though limit is 55%. Higher risks rejection or stress.[2]
Q: Does TDSR apply to refinancing?
A: Exempt for owner-occupiers; banks assess credit only.[1]
Q: How does variable income affect TDSR?
A: 70% of 12-month average counts.[2]
Q: TDSR vs MSR?
A: TDSR all debts (55%); MSR housing only (30%, HDB/EC).[2]
Q: Can Homejourney help improve my TDSR score?
A: Yes—use our calculator and brokers for strategies, multi-bank apps.
Disclaimer: This is general info; consult professionals. Rates as of 2026; MAS rules apply.
Calculate your TDSR explained how it affects your mortgage eligibility: how to improve approval chances now at https://www.homejourney.sg/bank-rates. Homejourney builds trust through transparency—start safely today. Link back to our pillar: Singapore Mortgage Guide.
