TDSR Explained: How It Affects Your Mortgage Eligibility FAQs | Homejourney
The Total Debt Servicing Ratio (TDSR) in Singapore limits your total monthly debt payments, including mortgages, to 55% of your gross monthly income, directly determining your mortgage eligibility for HDB or private properties.
Homejourney prioritizes your financial safety by helping you understand TDSR through transparent tools like our eligibility calculator at https://www.homejourney.sg/bank-rates#calculator.
What is TDSR and Why Does It Matter for Singapore Buyers?
TDSR Singapore is a Monetary Authority of Singapore (MAS) regulation ensuring borrowers don't overleverage.
It calculates all monthly debt obligations—mortgage, car loans, credit cards, personal loans—against your gross income.
The TDSR limit 55% applies to all property loans since 2013, tightened from 60% in 2021 to stabilize the market amid high property prices.
For HDB or EC buyers, TDSR works alongside the Mortgage Servicing Ratio (MSR) at 30% of income for housing loans only.
Homejourney's platform verifies your mortgage eligibility TDSR instantly, building trust through accurate, user-focused insights.
TDSR Calculation: Step-by-Step Breakdown
TDSR calculation uses this formula: (Total monthly debt payments / Gross monthly income) × 100 ≤ 55%.
Banks assess at a stress-tested interest rate (minimum 4% for residential loans) over the loan tenure.
Gross income excludes employer CPF contributions; variable income (bonuses, commissions) gets a 30% haircut based on 12-month average.
Credit card minimum payments are 3% of balance or $50, whichever is lower.
Rental income requires a valid tenancy agreement with 6+ months remaining.
Real-World TDSR Example Table
| Scenario | Gross Income | Other Debts | Max Mortgage Payment (55% TDSR) | Max Loan (30yr @4%) |
|---|---|---|---|---|
| Single Buyer | $10,000 | $1,000 | $4,500 | $760,000 |
| Joint (HDB) | $15,000 | $1,500 | $6,750 | $1.14M (MSR capped) |
Try Homejourney's TDSR tool at https://www.homejourney.sg/bank-rates to input your details for personalized results.
How TDSR Affects Your Mortgage Eligibility
Mortgage eligibility TDSR caps borrowing: exceed 55%, and banks reject or reduce loans.
For private properties, only TDSR applies; HDB/EC add MSR ≤30%.
Loan-to-Value (LTV) limits (75% for first-timer under 55) interact with TDSR.
Self-employed? Banks average 2-year income with haircuts; stable employment boosts approval.
At Homejourney, calculate your TDSR Singapore impact via Singpass integration for auto-filled, accurate assessments from DBS, OCBC, UOB, and more.
5 Actionable Steps to Improve TDSR and Boost Eligibility
- Pay down debts: Clear credit cards or car loans first—reduces minimum payments instantly.
- Add a co-borrower: Combine incomes (e.g., spouse) to raise the 55% threshold.
- Shorten tenure: Lower monthly payments fit under TDSR, though total interest rises.
- Prove stable income: Gather 12-month payslips; self-employed provide audited accounts.
- Use Homejourney: Compare rates from HSBC, Standard Chartered, Maybank at https://www.homejourney.sg/bank-rates and submit one app for multi-bank offers.
These steps helped a Tampines HDB upgrader on Homejourney increase borrowing by 15% after clearing $800 car loan.
TDSR vs MSR: Key Differences for HDB Buyers
TDSR covers all debts at 55%; MSR is housing-only at 30% for HDB/EC (pre-MOP).
Example: $12,000 income, $2,000 other debts—MSR allows $3,600 mortgage; TDSR caps total at $6,600 ($4,600 mortgage).
Refinancing HDB post-MOP? MSR exempt, but TDSR still applies.
Link to our pillar: TDSR Explained: How It Affects Your Mortgage Eligibility in Singapore ">TDSR Explained: How It Affects Your Mortgage Eligibility in Singapore for full details.
Frequently Asked Questions: TDSR Singapore
1. What is the TDSR limit in Singapore?
Answer: The TDSR limit is 55% of gross monthly income for all property loans, per MAS rules.
2. Does TDSR apply to refinancing?
Answer: Yes, all new housing loans or refinancing must meet TDSR 55%, including existing mortgages recalculated at stress rates.
3. Can I exclude student loans from TDSR?
Answer: No, all debts count, including tuition fees. Pay them off to improve eligibility.
4. How does variable income affect TDSR calculation?
Answer: 30% haircut on 12-month average for bonuses/commissions; rental income needs tenancy proof.
5. What's the best way to check my TDSR mortgage eligibility?
Answer: Use Homejourney's free calculator at https://www.homejourney.sg/bank-rates#calculator—Singpass auto-fills for precision.
Why Choose Homejourney for TDSR-Safe Financing
Homejourney creates a trusted space for property decisions with verified tools and multi-bank access (DBS, OCBC, UOB, HSBC, etc.).
Search budget-matched properties at https://www.homejourney.sg/search post-eligibility check.
Disclaimer: This is general info; consult professionals for advice. Rates as of 2026; MAS/HDB rules apply.
Start today: Compare rates & apply securely. For more, read our pillar on TDSR Explained: How It Affects Your Mortgage Eligibility in Singapore .
