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 TDSR in Singapore. This MAS rule ensures responsible borrowing amid high property prices, factoring in all loans like home, car, credit cards, and more[5][1][2].
At Homejourney, we prioritize your financial safety by verifying data and providing transparent tools like our eligibility calculator at Homejourney bank rates. This cluster dives deep into TDSR calculation, its impact on loans from DBS, OCBC, UOB, and others, with actionable steps to maximize your borrowing power.
What is TDSR Singapore and Why Does It Matter?
TDSR Singapore is a regulatory framework by the Monetary Authority of Singapore (MAS) introduced in 2013 to prevent over-borrowing. It caps total debt servicing—including your new mortgage—at TDSR limit 55% of gross income, tightened from 60% in December 2021 to cool the housing market[2][5].
For first-time buyers eyeing HDB flats in areas like Punggol or private condos in One-North, TDSR often becomes the binding constraint over Loan-to-Value (LTV) limits. Unlike MSR (30% for HDB/EC mortgages only), TDSR considers all debts, making it crucial for upgraders with car loans or credit card balances[1][2].
Homejourney's trusted platform helps you navigate this: use our bank rates comparison to see real-time offers from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank— all in one safe, verified space.
TDSR Calculation: Step-by-Step with Real Examples
TDSR calculation divides your total monthly debt obligations by gross monthly income, multiplied by 100. Banks use a stress-test interest rate (minimum 4% for homes) and apply a 30% 'haircut' to variable income like commissions[1][2].
Formula: TDSR = (Total Monthly Debt Repayments / Gross Monthly Income) × 100 ≤ 55%
- Assess Income: Fixed salary + averaged variable income (12 months, minus 30% haircut). Exclude CPF contributions.
- List Debts: Existing home/car/renovation loans, credit cards (minimum payments + instalments), student loans.
- Project New Mortgage: Use bank's stress rate (e.g., 4%) over chosen tenure.
- Check Ratio: Must stay under 55% post-new loan.
Example 1: Single Buyer, S$8,000 Income (No variable income, S$500 car loan, S$200 credit card).
- Max TDSR allowance: S$4,400 (55% of S$8,000).
- Existing debts: S$700.
- Available for mortgage: S$3,700/month.
- At 4% stress rate, 25-year tenure: Borrows ~S$630,000.
Example 2: Couple, S$15,000 Combined (S$5,000 variable, haircut to S$3,500) (S$1,000 existing loans).
- Adjusted income: S$13,500. Max: S$7,425.
- Available: S$6,425 → ~S$1.1M loan.
These scenarios show how debts slash eligibility—pay down first for bigger loans. Test yours instantly on Homejourney's mortgage eligibility calculator.
TDSR vs MSR: Key Differences for HDB Buyers
For HDB resale or EC (pre-MOP), MSR limit 30% applies alongside TDSR, often more restrictive. E.g., S$10,000 income: MSR caps mortgage at S$3,000/month (~S$500k loan), even if TDSR allows more[1][2].
| Scenario | Income | TDSR Max Mortgage | MSR Max Mortgage |
|---|---|---|---|
| No Debts | S$10,000 | S$5,500/mo (~S$900k) | S$3,000/mo (~S$500k) |
| S$1,500 Debts | S$10,000 | S$4,000/mo (~S$660k) | S$3,000/mo (~S$500k) |
Private property buyers dodge MSR but face TDSR fully. Refinancing owner-occupied homes is TDSR-exempt since 2016[1].
Current Bank Rates Comparison: TDSR Impact Across Lenders
Singapore banks tie rates to SORA (Singapore Overnight Rate Average), with packages from 2.5-3.5% p.a. in 2026. TDSR uses higher stress rates, so shop for low effective rates to fit more property into your limit.
The chart below shows recent interest rate trends in Singapore:
As seen, SORA fluctuates—lock fixed rates via Homejourney's bank rates page for stability. Compare:
- DBS/OCBC/UOB: Competitive SORA + 0.5-1%, strong for HDB.
- HSBC/Standard Chartered: Foreigner-friendly, cashback up to S$3k.
- Maybank/CIMB: Lower fees for investors.
Submit one Singpass-enabled application on Homejourney to get offers from all—auto-fills income for TDSR checks, prioritizing your safety.
How to Improve Mortgage Eligibility Under TDSR
Boost your mortgage eligibility TDSR with these insider steps:
- Clear Debts: Pay off credit cards/car loans 3-6 months pre-application. E.g., clear S$1,000/month debts to unlock S$170k more borrowing.
- Stabilize Income: Self-employed? Show 12-24 months audited accounts; variable workers, time bonuses.
- Shorten Tenure: 20 vs 30 years lowers monthly payments, fitting TDSR better.
- Joint Applications: Couples combine incomes (haircut applies).
- Refinance Existing: TDSR-exempt for owners; compare via Bank Rates .
Pro tip: For HDB in mature estates like Bedok, factor ABSD/TOP timing. Use Homejourney's property search to match budgets safely.
FAQ: TDSR Singapore Common Questions
Q: What is the TDSR limit 55% exactly?
A: Total debts ≤55% gross income, using 4%+ stress rate[5].
Q: Does TDSR apply to refinancing?
A: Exempt for owner-occupiers since 2016[1].
Q: How does variable income affect TDSR calculation?
A: 30% haircut on commissions/bonuses averaged over 12 months[2].
Q: Can foreigners use Homejourney for TDSR checks?
A: Yes, see our Foreigner Mortgage Eligibility Singapore: Complete 2026 Guide via Homejourney .
Q: Where to compare bank rates safely?
A: Homejourney's verified bank-rates tool.
Disclaimer: This is general info; consult Homejourney Mortgage Brokers or banks for personalized advice. Rates as of 2026; MAS rules may change[5].
Ready to calculate? Visit Homejourney bank rates for instant TDSR simulation, multi-bank quotes via Singpass, and trusted guidance. Link back to our pillar: TDSR Explained: How It Affects Your Mortgage Eligibility in Singapore for full coverage.
