TDSR Explained: Mortgage Eligibility & Homejourney Benefits
TDSR Singapore, or Total Debt Servicing Ratio, caps your total monthly debt payments at 55% of gross monthly income, directly determining your mortgage eligibility TDSR. This TDSR limit 55%% rule from MAS ensures borrowers avoid over-leveraging in Singapore's property market.
Homejourney simplifies understanding and navigating TDSR with its free eligibility calculator at https://www.homejourney.sg/bank-rates#calculator, helping you assess borrowing power instantly while prioritizing user safety and transparency.[1][2][5]
What is TDSR and Why Does It Matter for Mortgage Eligibility?
The total debt servicing ratio measures all your monthly debt obligations—including home loans, car loans, credit card minimums, and personal loans—against your gross monthly household income. MAS introduced TDSR in 2013 to safeguard financial stability, setting the TDSR limit 55%% for all property loans.[1]
For HDB flats and ECs, TDSR works alongside the Mortgage Servicing Ratio (MSR) at 30%, but TDSR is the stricter cap for private properties. If your TDSR exceeds 55%, banks reject your loan application regardless of downpayment or credit score.
This framework protects buyers in high-cost areas like Orchard or Tanjong Pagar, where median condo prices hit S$2.2M in 2026.
TDSR Calculation Formula
TDSR calculation = (Total Monthly Debt Payments / Gross Monthly Income) x 100. Must be ≤55%.
Example: A family earning S$10,000/month with S$4,000 home loan, S$500 car loan, S$300 credit cards totals S$4,800 debt. TDSR = (4,800/10,000) x 100 = 48% (approved). Add S$1,000 more debt? 58% (rejected).[1][5]
Real-World TDSR Examples for Singapore Buyers
Consider a first-time HDB buyer in Punggol earning S$8,000/month targeting a S$600,000 BTO flat at 2.5% SORA rate (30-year tenure).
- Monthly repayment: ~S$2,380
- Existing debts: S$400 (car + cards)
- Total debt: S$2,780
- TDSR: 34.75% (well under 55%)
Upgrading to a S$1.8M condo in Yishun? Repayment jumps to S$6,800 + S$400 debts = S$7,200. TDSR: 90% (ineligible). Use Homejourney's tool at https://www.homejourney.sg/bank-rates to simulate scenarios instantly.[1][2]
| Monthly Income | Max Debt at 55% TDSR | Max Home Loan (No Other Debts, 25yr@3%) |
|---|---|---|
| S$5,000 | S$2,750 | S$550,000 |
| S$10,000 | S$5,500 | S$1.1M |
| S$15,000 | S$8,250 | S$1.65M |
Table assumes no existing debts; adjust for realities like student loans. Homejourney's calculator factors in your full profile via Singpass.[5]
How TDSR Affects Different Buyer Profiles
First-time buyers often overlook existing debts; self-employed face averaged income assessments over 12 months. Investors with rental properties count net rental income at 70% after deductions.
Foreigners face tighter rules: max 75% LTV, shorter tenures, pushing TDSR higher. HDB upgraders must resell within 30 months, recalculating TDSR post-sale.[1]
Homejourney verifies your eligibility pre-application, connecting you to partners like DBS, OCBC, UOB for tailored offers while ensuring data security.
Boost Your Mortgage Eligibility Under TDSR
- Pay down debts: Clear credit cards or car loans 3-6 months pre-application to lower TDSR.
- Joint income: Include spouse/parents' income; households qualify higher.
- Shorter tenure: 25 years vs 30 reduces monthly payments (e.g., S$1M loan: S$4,750 vs S$4,200).
- Timing: Apply when bonuses boost assessed income.
- Refinance existing loans: Consolidate via Homejourney for better rates.
Track SORA trends—key for floating rates. The chart below shows recent interest rate trends in Singapore:
Rates stabilized at ~2.8-3.2% in early 2026, improving affordability. Homejourney's real-time tracking helps time applications.[2]
Benefits of Applying via Homejourney: Safe, Fast, Multi-Bank
Homejourney prioritizes your safety with verified bank partners (DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank) and Singpass integration—auto-fills income data for accurate TDSR checks in seconds.[1][5]
- Instant eligibility calculator shows TDSR calculation impact.
- One application yields offers from 10+ banks.
- Compare rates side-by-side at https://www.homejourney.sg/bank-rates.
- Pre-approval support without spam—transparency first.
Link to properties within budget via https://www.homejourney.sg/search. For deeper insights, see our pillar: TDSR Explained: Mortgage Eligibility & Bank Rates Guide | Homejourney .
FAQ: TDSR Singapore Common Questions
Q: What counts in TDSR calculation?
A: All recurring debts: home/car loans (full EMI), credit cards (5% min payment), personal loans, even education loans. Rental income offsets at 70%.[1]
Q: Can I exceed 55% TDSR limit?
A: No, except rare MAS waivers for high-net-worth. Banks enforce strictly.
Q: How does Homejourney help with mortgage eligibility TDSR?
A: Instant calculator + multi-bank submissions via Singpass for precise, secure assessments.
Q: TDSR for self-employed?
A: Average income over 12 months; provide NOA/SA/audited accounts.
Q: Impact of refinancing on TDSR?
A: Lowers payments if rates drop; Homejourney compares options seamlessly.
Disclaimer: This is general guidance. Consult professionals for advice. Rates as of Feb 2026; verify current terms.[1][5]
Ready to check your TDSR explained how it affects your mortgage eligibility? Start with Homejourney's tools today for a trusted journey: https://www.homejourney.sg/bank-rates.
