TDSR Explained: How It Affects Your Mortgage Eligibility: Bank Rate Comparison Guide
TDSR Singapore, or Total Debt Servicing Ratio, limits your total monthly debt payments—including your mortgage—to 55% of your gross monthly income. This rule directly determines your mortgage eligibility TDSR by capping how much you can borrow, ensuring you don't overleverage in Singapore's high-cost property market.
At Homejourney, we prioritize your financial safety by providing transparent tools like our bank rates comparison page. Use it to check real-time rates from DBS, OCBC, UOB, HSBC, and more while factoring in TDSR calculation impacts. This cluster article dives deep into TDSR explained how it affects your mortgage eligibility: bank rate comparison guide, linking back to our pillar guide on Singapore home loans for comprehensive coverage.
What is TDSR and Why Does It Matter in Singapore?
The Monetary Authority of Singapore (MAS) introduced TDSR in 2013 to prevent overborrowing amid rising property prices[4]. Today, the TDSR limit 55% applies to all property loans from financial institutions, covering not just mortgages but all debts like car loans, credit cards, and student loans[3].
For example, with a $10,000 monthly gross income, your total debt repayments can't exceed $5,500. This safeguards borrowers and stabilizes the market, as seen in recent tightening from 60% to 55% in December 2021[2]. Homejourney's eligibility calculator on our mortgage calculator page instantly shows your borrowing power under these rules.
TDSR Calculation: Step-by-Step Formula
TDSR calculation uses this MAS formula: (Total monthly debt obligations / Gross monthly income) x 100% ≤ 55%[7]. Banks stress-test at a minimum 4% interest rate floor for realism, even if current rates are lower[3].
- Gross monthly income: Pre-tax salary, excluding CPF. Variable income (bonuses, commissions) gets a 30% haircut, averaged over 12 months[3].
- Total debt obligations: Mortgage + existing loans + minimum credit card payments.
- Loan tenure: Based on income-weighted age of borrowers, max 75 years or retirement age[1].
Self-employed? Expect further haircuts on business income. Use Homejourney's bank-rates tool to simulate scenarios safely.
Real-World TDSR Examples for Singapore Buyers
Scenario 1: Single buyer, $8,000 income, no debts, 4% rate, 30-year tenure. Max mortgage payment: $4,400 (55%). This affords ~$900,000 loan for a Punggol BTO flat.
Scenario 2: Couple, $15,000 combined, $1,000 car loan. Max total debt: $8,250. After car loan, mortgage capped at $7,250/month—enough for $1.5M condo in Yishun.
| Monthly Income | No Debts: Max Mortgage Payment | With $1,000 Debts: Max Mortgage Payment |
|---|---|---|
| $10,000 | $5,500 | $4,500 |
| $15,000 | $8,250 | $7,250 |
| $20,000 | $11,000 | $10,000 |
These reflect 2026 conditions; check Homejourney bank rates for updatesTDSR Explained: Boost Mortgage Eligibility & Approval Odds | Homejourney .
TDSR vs MSR: Key Differences for HDB Buyers
TDSR is universal at 55%; MSR caps HDB/EC mortgages at 30% of income[3]. Both apply, so HDB upgraders face dual limits. For private properties, only TDSR matters.
Insider tip: Joint applications with family can boost income-weighted age, shortening tenure but passing TDSR via higher earners[1]. Homejourney verifies your eligibility transparently.
Current Bank Rates Impact on TDSR Eligibility
Lower rates mean lower payments, freeing TDSR headroom. SORA (Singapore Overnight Rate Average) benchmarks most loans—track it via Homejourney.
The chart below shows recent interest rate trends in Singapore:
As seen, 3M SORA hovers ~3.5% in 2026. Compare packages:
- DBS: 3M SORA + 0.7% (~4.2%)
- OCBC: Fixed 3.5% intro, then SORA + 0.6%
- UOB: SORA + 0.65%
- HSBC/Standard Chartered: Competitive for high earners
Visit Homejourney's bank rates for live comparisons from all partners like Maybank, CIMB, RHB.
How to Boost Your Mortgage Eligibility Under TDSR
Pay down debts first—clear $500/month credit card to unlock $900 more mortgage room. Time variable income proof over 12 months for full credit.
- Reduce existing loans (e.g., refinance car at lower rate).
- Choose longer tenure if age allows, but balance higher total interest.
- Apply via Singpass on Homejourney—auto-fills income for instant TDSR check.
- Submit one app to DBS, OCBC, UOB, etc., for best offers.
Disclaimer: This is general guidance; consult Homejourney Mortgage Brokers for personalized advice. We build trust through verified data and user feedback.
Homejourney: Your Safe Path to Mortgage Success
Calculate TDSR instantly at Homejourney mortgage calculator. Search budget-friendly properties via property search. For post-purchase, check aircon services.
Link to our pillar: Singapore Home Loans Pillar Guide for full eligibility details.
FAQ: TDSR Singapore Common Questions
Q: What is the current TDSR limit?
A: 55% of gross monthly income for all debts[4].
Q: Does TDSR apply to refinancing?
A: Yes, unless exempted for owner-occupied homes under specific conditions[1].
Q: How does variable income affect TDSR calculation?
A: 30% haircut on averages; prove with 12-month records[3].
Q: Can assets bypass TDSR?
A: Yes, via Asset Under Management if you show liquid funds[1].
Q: Where to compare bank rates safely?
A: Homejourney's bank-rates page—trusted, verified, one-stop.
Ready to check your total debt servicing ratio? Start with Homejourney today for secure, transparent mortgage eligibility. Compare rates now.
