TDSR Explained: How It Affects Your Mortgage Eligibility: Bank Rate Comparison Guide
The Total Debt Servicing Ratio (TDSR) limits your total monthly debt payments to 55% of your gross monthly income, directly determining your mortgage eligibility in Singapore.[1][2][5] This rule, set by the Monetary Authority of Singapore (MAS), ensures responsible borrowing amid high property prices. Homejourney simplifies this with our free TDSR calculator at https://www.homejourney.sg/bank-rates#calculator, helping you compare rates from DBS, OCBC, UOB, and more while checking eligibility instantly.
This cluster article dives into TDSR calculation, its impact on loans, and bank rate comparisons, building on our pillar guide to Singapore home financing. As a trusted platform prioritizing user safety, Homejourney verifies data from MAS and HDB sources to empower confident decisions.[1][2]
What is TDSR Singapore and Why Does It Matter?
TDSR Singapore assesses all your debts—mortgage, car loans, credit cards—against income to prevent over-borrowing.[1][5] Introduced in 2013 by MAS, the current TDSR limit 55% tightened from 60% in 2021 to cool the market and protect households.[1] For HDB buyers, it pairs with the Mortgage Servicing Ratio (MSR) at 30% of income for housing loans only.[2]
High property costs in areas like Toa Payoh or Punggol make TDSR crucial; exceeding it blocks loans even with strong income. Homejourney's tools let you test scenarios safely, using Singpass for accurate, auto-filled assessments.
TDSR Calculation: Step-by-Step Breakdown
TDSR calculation = (Total monthly debt obligations / Gross monthly income) × 100. It must stay ≤55%.[1][2][5]
Gross monthly income excludes CPF contributions. Variable income (bonuses, commissions) gets a 30% haircut, averaged over 12 months. Rental income needs a tenancy agreement with 6+ months left, also haircut-adjusted.[1]
Total monthly debt obligations include all loans plus the new mortgage, calculated at a medium-term rate with a 4% floor—higher than current SORA for safety.[1] Banks review credit via Credit Bureau Singapore reports.
- Sum all existing debts (e.g., car loan S$800, credit card minimum S$200).
- Add projected new mortgage at 4% stress rate.
- Divide by gross income (fixed + haircut variable).
- Result ≤55% = eligible.
Disclaimer: This is general guidance; consult Homejourney mortgage brokers for personalized advice via https://www.homejourney.sg/bank-rates.
Real-World TDSR Examples for Singapore Buyers
Couple earns S$10,000/month (S$8,000 fixed + S$2,000 bonus haircut to S$1,400). Existing debts: S$500. New mortgage at 4% stress: Max total debt S$5,500 (55%). New loan capacity ~S$5,000/month serviceable.
| Monthly Income | Max Total Debt (55% TDSR) | Max New Mortgage (No Other Debts) |
|---|---|---|
| S$8,000 | S$4,400 | S$900,000 loan (30yrs) |
| S$12,000 | S$6,600 | S$1,350,000 loan (30yrs) |
| S$20,000 | S$11,000 | S$2,250,000 loan (30yrs) |
Assumes 4% rate, 30-year tenure. Use Homejourney's calculator for your numbers.[3]
How TDSR Affects Mortgage Eligibility
Mortgage eligibility TDSR caps borrowing: High existing debts or variable income reduce capacity. First-time buyers often qualify fully; upgraders with HDB loans hit limits faster due to MSR.[2] Age/tenure rules add: Max 65 or 30/35 years.[2]
LTV limits interact: First property 75% (bank) or 80% (HDB), dropping with more loans.[2] Self-employed face stricter haircuts; stable salaried workers fare best.
Current Bank Rates Comparison: TDSR Impact
Lower rates boost borrowing under TDSR stress tests, but banks peg to SORA (Singapore Overnight Rate Average). Homejourney aggregates rates from partners: DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank.
Compare at https://www.homejourney.sg/bank-rates: Fixed packages 2.5-3.0% initial, floating 3M SORA +0.5-1.0%. Lower margins = higher eligibility.
The chart below shows recent interest rate trends in Singapore:
Rates hover ~3% (2026 data); fixed suits stability, floating risks TDSR breaches if rising.[1]
Boost Your Mortgage Eligibility Under TDSR
- Pay down debts: Clear credit cards first (minimums count fully).[1]
- Boost income proof: Stabilize variables over 12 months.
- Shorten tenure: Reduces monthly outgo, but raises payments.
- Joint applications: Combine incomes (e.g., spouse adds S$5,000).[1]
- Refinance existing: Lock lower rates via Homejourney multi-bank submission.
Steps: 1) Use Homejourney calculator. 2) Apply via Singpass—one form, multiple offers. 3) Search budget-fit properties at https://www.homejourney.sg/search.
Read more: TDSR Explained: Boost Mortgage Eligibility & Approval Odds | Homejourney
FAQ: TDSR Singapore Common Questions
Q: What is the TDSR limit in Singapore?
A: 55% of gross income for all debts, per MAS.[1][5]
Q: Does TDSR apply to HDB loans?
A: Yes, alongside 30% MSR. Get HFE letter for eligibility.[2]
Q: How to calculate TDSR with bonuses?
A: 30% haircut on 12-month average.[1] Try Homejourney's tool.
Q: Can I improve TDSR for refinancing?
A: Reduce debts, compare rates on Homejourney. Submit once for DBS/OCBC/UOB offers.
Q: What's the TDSR stress rate?
A: Minimum 4% for mortgages.[1]
Maximize mortgage eligibility TDSR with Homejourney—compare rates, calculate instantly, apply safely today at https://www.homejourney.sg/bank-rates. For full pillar coverage, explore our Singapore home loans guide. Trust Homejourney for verified, transparent property journeys.
