TDSR Singapore Explained: How It Affects Your Mortgage Eligibility
The definitive guide to TDSR Singapore, the Total Debt Servicing Ratio framework that caps your total monthly debt repayments at 55% of gross income, directly determining your mortgage eligibility for HDB, EC, or private properties. Homejourney simplifies this with our instant eligibility calculator at https://www.homejourney.sg/bank-rates#calculator, helping you make safe, informed decisions in Singapore's property market.
This pillar guide covers TDSR calculation, MSR differences, real examples, and strategies to boost eligibility, positioning Homejourney as your trusted partner for transparent mortgage journeys.
Table of Contents
- What is TDSR Singapore?
- TDSR vs MSR: Key Differences
- TDSR Calculation Formula and Examples
- TDSR Limits and When It Applies
- How Different Income Types Affect TDSR
- How to Improve Your TDSR and Eligibility
- Homejourney Tools for TDSR and Mortgages
- TDSR Exemptions and Special Cases
- FAQ: TDSR Singapore Common Questions
What is TDSR Singapore?
The Total Debt Servicing Ratio (TDSR) is a regulatory framework enforced by the Monetary Authority of Singapore (MAS) to ensure borrowers maintain financial prudence. It limits total monthly debt obligations—including mortgages, car loans, credit cards, and personal loans—to no more than 55% of gross monthly income.[4]
Introduced in 2013 and tightened to 55% from 60% in December 2021, TDSR prevents over-leveraging amid rising property prices. For Singaporeans eyeing HDB flats in areas like Toa Payoh or private condos in Orchard, understanding TDSR is crucial for mortgage eligibility.[1][2]
Homejourney verifies all data against official MAS and HDB guidelines, ensuring you get accurate insights for confident decisions. A good TDSR stays at 30-40% for long-term affordability, even if under the 55% cap.[3]
Why TDSR Matters for Mortgage Eligibility
TDSR directly caps your borrowing power. For a S$10,000 monthly income household, total debts cannot exceed S$5,500 monthly. This affects loan quantum from banks like DBS, OCBC, and UOB, key Homejourney partners.[1]
Insider tip: In high-demand areas like Punggol, where median HDB resale prices hit S$500,000-S$600,000 (2026 data), a high TDSR can disqualify you from desirable units. Use Homejourney's property search to filter within your TDSR limits.
TDSR vs MSR: Key Differences Explained
Mortgage Servicing Ratio (MSR) applies only to HDB flats and Executive Condominiums (ECs), capping housing loan repayments at 30% of gross income (including employee's CPF). TDSR is broader, covering all debts at 55%.[2][3]
| Aspect | TDSR | MSR |
|---|---|---|
| Limit | 55% of gross income | 30% of gross income |
| Applies To | All property loans + other debts | HDB/EC loans only |
| Debt Types | Mortgage + car/credit card loans | Housing loans only |
| Who Enforces | All banks/FIs | HDB/EC borrowers |
For HDB loans from banks, both apply—MSR first, then TDSR. HDB direct loans skip TDSR but follow MSR.[2] Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator assesses both instantly.
TDSR Calculation Formula and Real Examples
TDSR = (Total Monthly Debt Obligations / Gross Monthly Income) × 100%. Must ≤55%.[3][4]
Debts include projected mortgage (at bank stress rate, e.g., 4%), car loans, credit cards (minimum payments), student loans. Gross income: salary + commissions (70% if variable, averaged over 12 months).[3]
Step-by-Step TDSR Calculation
Sum all monthly debts (existing + new mortgage).
Divide by gross monthly income.
Multiply by 100; check against 55%.[3]
Example: Single buyer, S$6,000 income, S$500 car loan, S$200 credit card. New S$800,000 condo mortgage (30-year, 4% stress rate): ~S$3,800/month. Total debt: S$4,500. TDSR=75% (exceeds 55%, ineligible).[1]
| Monthly Income | No Other Debts: Max Mortgage Payment | Max Property Price (25yr tenure, 4% rate) |
|---|---|---|
| S$5,000 | S$2,750 (55%) | ~S$550,000 |
| S$10,000 | S$5,500 | ~S$1.1M |
| S$15,000 (joint) | S$8,250 | ~S$1.65M |
Try Homejourney's TDSR calculator for personalized scenarios, factoring SORA rates.
TDSR Limits and Property Type Applicability
TDSR applies to all new housing loans since Dec 2021 (OTP granted post-date).[3] Private properties: TDSR only. HDB/EC from banks: TDSR + MSR. HDB direct: MSR only.[2]
- HDB Flat (bank loan): Both; e.g., S$400,000 BTO in Sengkang.
- EC: Both until MOP; e.g., Parktown Residence.
- Private Condo: TDSR; e.g., S$1.5M unit in Tanjong Pagar, 5-min walk from MRT Exit A.
Refinancing owner-occupied homes exempts TDSR since 2016.[1] Homejourney's bank rates page compares DBS, OCBC, UOB for your needs.
Interest Rate Impact on TDSR
Banks use a 4% stress test rate for TDSR mortgage projections, higher than current SORA (~3% in 2026). SORA (Singapore Overnight Rate Average) is the main benchmark for floating loans.
The chart below shows recent interest rate trends in Singapore:
As seen, 3M/6M SORA fluctuated 2.8-3.2% over 6 months, affecting real payments but not TDSR caps. Track live via Homejourney.
For related reading: TDSR总债务偿还比率详解：银行利率比较 | Homejourney ">TDSR总债务偿还比率详解：银行利率比较 | Homejourney
How Income Types Affect TDSR Assessment
Employed: Full gross salary + CPF (employee only).[2] Self-employed: Latest 12-month average, 70% if variable.[3] Joint applicants: Combined income.
Rental income: 70% counted if consistent. CPF Ordinary Account (OA) cannot service debts for TDSR.[4] Insider tip: For freelancers in creative hubs like one-north (10-min walk from One-North MRT), document 12-month averages meticulously.
Age and Tenure Limits
Loan tenure ≤75 years old (or 65 for some banks). E.g., 40-year-old max 35 years. Impacts monthly payments in TDSR.[1]
Credit score (via Credit Bureau Singapore): 1,400+ ideal; below affects approval post-TDSR.
How to Improve TDSR and Boost Mortgage Eligibility
Pay down debts: Clear credit cards/car loans 3-6 months pre-application.
Increase income: Add stable side hustle, document fully.
Larger downpayment: 25%+ reduces loan size.
Longer tenure: Up to age limit lowers monthly.
Refinance non-property debts: Consolidate at lower rates.
Practical: For S$700,000 HDB upgrade in Woodlands, paying off S$20,000 car loan boosts capacity by S$500/month. See TDSR总债务偿还比率详解：如何提高申请成功率 | Homejourney ">TDSR总债务偿还比率详解：如何提高申请成功率 | Homejourney .
Homejourney Tools for TDSR and Mortgage Success
At Homejourney, user safety and trust drive our mortgage features:
- Instant TDSR/MSR calculator: Input income/debts, get eligibility.
- Compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank at https://www.homejourney.sg/bank-rates.
- Singpass auto-fill: Faster, secure applications.
- Multi-bank submission: One form, multiple offers.
Post-purchase, maintain with aircon services. For credit tips: Credit Score Impact on Mortgage Approval: Improve Chances | Homejourney ">Credit Score Impact on Mortgage Approval: Improve Chances | Homejourney .
TDSR Exemptions and Exceptional Cases
Owner-occupier refinancing: TDSR-exempt.[1][2] Investment properties: May exceed with MAS approval, rare. No full exemptions for new buys.[4]
Disclaimer: This guide is educational; consult Homejourney brokers or financial advisors. Rates as of 2026; verify current MAS rules.
FAQ: TDSR Singapore Common Questions
What is the TDSR limit in Singapore? 55% of gross monthly income for total debts.[3][4]
Does TDSR apply to HDB loans? Yes for bank loans (with MSR); no for HDB direct.[2]
How to calculate TDSR Singapore? (Debts / Income) x 100 ≤55%. Use Homejourney calculator.
Is refinancing exempt from TDSR? Yes for owner-occupiers.[1]
What if TDSR exceeds 55%? Larger downpayment, longer tenure, or cheaper property. Exceptional MAS approval possible.[4]
Good TDSR ratio? 30-40% for prudence.[3]
Does variable income count fully? 70% averaged over 12 months.[3]
How does credit score affect TDSR? TDSR first, then credit check. Improve via Credit Score Impact on Mortgage Approval: Homejourney Benefits ">Credit Score Impact on Mortgage Approval: Homejourney Benefits .
