TDSR Explained: Mortgage Eligibility & Homejourney Benefits
TDSR Singapore, or Total Debt Servicing Ratio, caps your total monthly debt payments at 55% of your gross monthly income, directly determining your mortgage eligibility TDSR. This Monetary Authority of Singapore (MAS) rule ensures borrowers avoid over-leveraging in Singapore's property market. Homejourney simplifies TDSR calculation with instant tools, helping you assess borrowing power securely.
Understanding total debt servicing ratio is crucial for first-time HDB buyers in areas like Punggol or Toa Payoh, upgraders eyeing condos in Orchard, or investors in Sentosa Cove. Homejourney's verified platform prioritizes your safety with Singpass integration for accurate, scam-free applications. Learn how it works and why applying via Homejourney boosts your success.
What is TDSR and the 55% Limit?
The TDSR limit 55%% means all your debt repayments—including home loans, car loans, credit card minimums—cannot exceed 55% of your gross income. For HDB or EC buyers, the stricter Mortgage Servicing Ratio (MSR) applies at 30%, but TDSR overrides for private properties.
Enforced since 2013 by MAS, TDSR prevents debt bubbles. Example: With $10,000 monthly income, max debt payments are $5,500. Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator factors this instantly, using your Singpass data for precision.
This framework connects to our pillar guide on Singapore mortgages—see TDSR Explained: Mortgage Eligibility & Bank Rates Guide | Homejourney ">TDSR Explained: Mortgage Eligibility & Bank Rates Guide for full coverage.
TDSR Calculation: Step-by-Step with Examples
TDSR calculation uses this formula: (Total Monthly Debt Obligations / Gross Monthly Income) x 100 ≤ 55%.
Debts include: projected home loan at bank-assessed interest (e.g., 4% p.a.), existing loans, credit cards (5% of limit), student loans. Banks stress-test at 3.5% above current rates.
- Calculate gross income (fixed salary + bonuses if stable).
- List all debts.
- Project home loan: Use Homejourney's tool for accurate SORA-based estimates.
- Divide total debts by income.
Real example: Couple earning $12,000/month, $1,000 car loan, $300 cards. Max new home loan: ~$4,450/month, buying $1.5M condo in Yishun (30% downpayment). Test on Homejourney now.
| Monthly Income | Max Total Debt (55% TDSR) | Sample Home Loan (after $1k other debts) |
|---|---|---|
| $8,000 | $4,400 | $3,400 |
| $10,000 | $5,500 | $4,500 |
| $15,000 | $8,250 | $7,250 |
Self-employed? Use average last 12 months' income, verified via IRAS. Homejourney auto-pulls Singpass data for reliability.
How TDSR Affects Your Mortgage Eligibility
TDSR slashes borrowing power if you have debts. A $2,000 car loan cuts $600k+ from a $1.5M purchase. Age matters: Max tenure 75 minus age, e.g., 40-year-old max 35 years.
Credit score (via Credit Bureau Singapore) must be strong; below 1,400 risks rejection. HDB: Add MSR check. Investors: TDSR applies to all properties.
Common pitfall: Underestimating stress rates. Homejourney's calculator shows real impact—link to https://www.homejourney.sg/bank-rates for DBS, OCBC, UOB comparisons.
Benefits of Applying via Homejourney
Homejourney stands out for user safety and trustworthiness, verifying all data to build confidence. Key advantages:
- Instant TDSR Check: Eligibility calculator auto-fills via Singpass, shows borrowing power across banks.
- Multi-Bank Offers: One application to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank—receive best rates.
- Rate Comparison: Side-by-side from 10+ partners, real-time SORA tracking.
- Secure Process: No scams—verified platform with AI chatbot Homie for queries.
- Pre-Approval Fast: Connect to Homejourney Mortgage Brokers for personalized advice.
Unlike fragmented options, Homejourney streamlines: Search properties at https://www.homejourney.sg/search, calculate loans, apply seamlessly. Users report 30% faster approvals.
How to Improve Your TDSR and Eligibility
Boost capacity with these steps:
- Pay Down Debts: Clear credit cards first (high impact).
- Increase Income: Add spouse's if joint applicant.
- Shorten Tenure: But balance affordability.
- Time Purchases: Refinance car loans pre-application.
- Use Homejourney: Simulate scenarios free.
Pro tip: For HDB in mature estates like Bedok, factor CPF usage. See TDSR Explained: Boost Mortgage Eligibility & Approval Odds | Homejourney ">TDSR Explained: Boost Mortgage Eligibility.
Disclaimer: This is general info; consult professionals. Rates as of 2026; MAS rules apply. Homejourney verifies but not financial advice.
FAQ: TDSR Singapore Common Questions
Q: Does TDSR apply to HDB loans?
A: Yes, but MSR (30%) is stricter for HDB/EC. Private properties use TDSR 55%.[MAS guidelines]
Q: How does variable income affect TDSR?
A: Banks average 12 months; stable freelancers qualify. Use Homejourney's tool for projection.
Q: Can I bypass TDSR?
A: No—mandatory for all. Improve ratio instead.
Q: What's the best bank for TDSR-friendly loans?
A: Compare on Homejourney: DBS/OCBC often competitive. Apply once for all.
Q: How accurate is Homejourney's calculator?
A: Uses Singpass + live rates; matches bank pre-approvals 95%+.
Ready to check your TDSR explained how it affects your mortgage eligibility: benefits of applying via Homejourney? Start at https://www.homejourney.sg/bank-rates. Find budget-fit properties via property search and explore projects at Projects ">[Projects Directory]. Trust Homejourney for your safe journey home.
