TDSR Explained How It Affects Your Mortgage Eligibility: Benefits of Applying via Homejourney
The Total Debt Servicing Ratio (TDSR) in Singapore caps your total monthly debt payments at 55% of your gross monthly income, directly determining your mortgage eligibility. This Monetary Authority of Singapore (MAS) rule ensures borrowers avoid over-leveraging, protecting you in a safe property market. Homejourney simplifies TDSR calculations with its instant eligibility calculator, helping you assess borrowing power securely via Singpass.
This cluster article dives into TDSR Singapore mechanics, calculations, and impacts on home loans, linking back to our pillar guide on TDSR Explained: Mortgage Eligibility & Bank Rates Guide. Discover actionable steps to maximize eligibility using Homejourney's verified tools for transparent, stress-free financing.
What is TDSR and Why Does It Matter in Singapore?
TDSR (Total Debt Servicing Ratio) measures all your monthly debt obligations—including home loans, car loans, credit card minimums, and personal loans—against your gross income. Singapore's TDSR limit is 55%, stricter for private properties than HDB's 30% Mortgage Servicing Ratio (MSR). This framework, enforced by MAS since 2013, prevents financial overextension amid rising interest rates.
For example, with a S$10,000 monthly income, your total debts cannot exceed S$5,500. Exceeding this blocks mortgage approval, even with strong credit. Homejourney's platform verifies your TDSR instantly, prioritizing user safety by auto-filling data via Singpass for accurate assessments.
TDSR Calculation: Step-by-Step Guide
Understanding TDSR calculation is key to mortgage eligibility TDSR. Banks use a standardized formula assuming a 30-year loan at the higher of 3.5% interest or 0.5% above current rates, plus existing debts.
- Calculate monthly mortgage payment: Use loan amount, tenure, and stress rate.
- Add other debts: Car loans (e.g., S$800/month), credit cards (5% of limit), student loans.
- Divide by gross income: (Total debts / Income) ≤ 55%.
Real Example: Mr. Tan earns S$8,000/month, has S$500 car loan and S$300 credit card payments. For a S$1.2M condo, stress-tested mortgage is S$3,800/month. Total debt: S$4,600 (57.5%)—exceeds 55%, ineligible. Reduce debts to qualify for S$1.1M.
| Monthly Income | Max Total Debt (55% TDSR) | Est. Mortgage (After S$1,000 Other Debts) |
|---|---|---|
| S$6,000 | S$3,300 | S$2,300 |
| S$10,000 | S$5,500 | S$4,500 |
| S$15,000 | S$8,250 | S$7,250 |
Use Homejourney's free calculator at https://www.homejourney.sg/bank-rates#calculator to run your numbers securely.
How TDSR Affects Your Mortgage Eligibility
TDSR Singapore limits borrowing more than income alone. Self-employed? Banks average 2-year income and apply conservative stress tests. Variable income (e.g., commissions) gets haircut. Age 55+? Max tenure drops to 25 years, shrinking loan size.
HDB buyers face MSR (30%) alongside TDSR—double check needed. Investors: Rental income counts at 70% after deductions, but TDSR aggregates all properties. Poor credit? Even under 55%, approvals falter. Homejourney's tools factor these precisely, connecting you to partners like DBS, OCBC, UOB.
Current trend: With SORA rates fluctuating, stress tests amplify payments. The chart below shows recent interest rate trends in Singapore:
As seen, 3M SORA hovered around 3.0-3.2% in late 2025, pushing stress-tested payments higher and tightening eligibility.
Benefits of Applying via Homejourney: Maximize Eligibility Safely
Homejourney stands out for user safety and trustworthiness, verifying all data to build confidence in transactions. Skip fragmented bank visits—compare rates from DBS Bank, OCBC Bank, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB Bank, Public Bank, Hong Leong Bank, and Citibank at https://www.homejourney.sg/bank-rates.
- Instant TDSR Check: Eligibility calculator shows borrowing power pre-application.
- Singpass Integration: Auto-fills income/employment for accurate TDSR, faster approvals.
- Multi-Bank Submission: One form yields offers from 11+ banks, optimizing rates within TDSR.
- Verified Platform: Scam-free, with real-time SORA tracking for timely decisions.
- Broker Guidance: Connect with Homejourney Mortgage Brokers for personalized TDSR strategies.
Pro tip: First-time buyers in areas like Toa Payoh or Punggol—use our projects directory to match HDB loans under MSR/TDSR limits.
5 Actionable Steps to Improve TDSR and Boost Eligibility
Enhance mortgage eligibility TDSR with these tactics:
- Pay Down Debts: Clear credit cards (min. payments count fully).
- Consolidate Loans: Merge high-interest debts for lower monthly outgo.
- Boost Income Proof: Self-employed? Gather 24 months' audited accounts.
- Time Purchases: Apply post-bonus; wait 3 months after debt closure.
- Simulate on Homejourney: Test scenarios at bank-rates calculator, then search budget-fit properties via https://www.homejourney.sg/search.
Disclaimer: This is general guidance; consult professionals for advice. Regulations per MAS/HDB as of 2026.
FAQ: TDSR Singapore Common Questions
Q: What is the TDSR limit in Singapore?
A: TDSR limit 55% of gross income for all debts, per MAS guidelines.
Q: Does rental income count in TDSR calculation?
A: Yes, at 70% after 10-15% vacancy/maintenance deductions, but only for investors.
Q: How does TDSR differ for HDB vs private properties?
A: HDB adds 30% MSR; private is TDSR-only but often stricter due to higher values.
Q: Can Homejourney help with refinancing under TDSR?
A: Yes, compare rates and recalculate eligibility instantly to lower payments.
Q: Is credit score part of TDSR?
A: Indirectly—low scores raise rates, worsening TDSR. See our guide: Credit Score Impact.
Ready to check your TDSR eligibility? Visit Homejourney bank-rates for safe, verified mortgage tools. Explore our pillar on TDSR & Bank Rates for full insights.
