TDSR Singapore Explained: How It Limits Your Mortgage Eligibility
The Total Debt Servicing Ratio (TDSR) is a key MAS regulation capping debt repayments at 55% of your gross monthly income, directly determining your mortgage eligibility in Singapore. This definitive Homejourney guide breaks down TDSR calculation, real examples, and strategies to maximize borrowing power while prioritizing your financial safety.
Whether you're a first-time HDB buyer or condo investor, understanding TDSR Singapore ensures confident decisions. Homejourney's tools like our eligibility calculator make it simple to check your limits instantly.
What is TDSR in Singapore?
The Total Debt Servicing Ratio (TDSR) measures the percentage of your gross monthly income used for all debt repayments, including mortgages, car loans, credit cards, and personal loans. Enforced by the Monetary Authority of Singapore (MAS), the TDSR limit is 55% for all property types.[5]
This rule ensures borrowers maintain financial stability amid high property prices. For instance, private condos in prime areas like Orchard Road often exceed S$2 million, making TDSR a critical eligibility gatekeeper.[1]
Homejourney verifies your TDSR instantly via Singpass, helping you avoid surprises during bank applications.
Why TDSR Matters for Mortgage Eligibility
TDSR directly caps your loan quantum. Exceeding 55% results in rejection, even with strong income. It applies to new loans, refinancing, and further borrowing.[2]
History and Purpose of TDSR Framework
Introduced by MAS in June 2013, TDSR aimed to curb over-leveraging after rapid household debt growth. The limit tightened from 60% to 55% in December 2021 to cool rising property prices and debt levels.[2]
Its purposes include preventing property bubbles, promoting responsible borrowing, and ensuring resilience during rate hikes or job losses. In 2026, with SORA rates stabilizing around 3%, TDSR remains vital as banks stress-test at 4% interest.[1][2]
Current TDSR Regulations (2026)
MAS periodically reviews the 55% cap based on economic conditions. All banks, including DBS, OCBC, and UOB, must comply—no waivers allowed.[5]
TDSR vs MSR: Understanding the Differences
TDSR (55% limit) covers all debts for any property. MSR (30% limit) applies only to HDB flats and ECs (pre-MOP), focusing solely on mortgage payments.[3]
| Aspect | TDSR | MSR |
|---|---|---|
| Applies To | All properties & all debts | HDB/EC only, mortgage only |
| Limit | 55% of gross income | 30% of gross income |
| Example Impact | Car loan reduces home loan | HDB buyers face dual caps |
HDB upgraders face both; private property buyers only TDSR. Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator to test scenarios.[3]
How TDSR Calculation Works Step-by-Step
TDSR = (Total Monthly Debt Obligations / Gross Monthly Income) x 100. Must ≤55%. Debts include projected mortgage (at 4% stress rate), existing loans, minimum credit card payments (5% balance), and more.[1][5]
- Calculate gross income (basic + allowances; haircuts apply).
- List all debts at stress rates.
- Sum obligations; divide by income.
- Adjust if over 55%.
Stress Interest Rate in TDSR
Banks use a minimum 4% rate for calculations, even if current SORA is lower. This buffers against hikes.
The chart below shows recent interest rate trends in Singapore:
As seen, SORA fluctuated but stress tests remain at 4%, impacting TDSR calculation conservatively.[2]
Income Types and Adjustments in TDSR
Gross income excludes CPF contributions. Fixed salaries count fully; variable (bonuses, commissions) get 70% haircut (30% deducted). Rental income requires 6+ months lease, also haircutted.[2]
- Employed: Last 12 months average.
- Self-Employed: IRAS-assessed income, 12-24 months.
- Financial Assets: Eligible but spread over 48 months with haircuts.
Homejourney auto-pulls verified income via Singpass for accurate TDSR checks.
Real-World TDSR Calculation Examples
Scenario 1: Single buyer, S$6,000 income, no debts. Max debt: S$3,300. At 4%, affords ~S$700,000 loan (25 years).
| Monthly Income | Max Debt (55%) | Est. Loan (4%, 25yrs) |
|---|---|---|
| S$5,000 | S$2,750 | S$580,000 |
| S$8,000 | S$4,400 | S$930,000 |
| S$12,000 (couple) | S$6,600 | S$1.4M |
Scenario 2: S$10,000 income, S$1,000 car loan, S$300 credit card. Available for mortgage: S$5,500 - S$1,300 = S$4,200. Loan ~S$890,000. Pay off car first to boost by S$200k.[1]
For HDB in Punggol (S$500k resale), MSR further limits to 30% (S$3,000), but TDSR governs total.
How to Improve Your TDSR Standing and Mortgage Eligibility
Reduce debts: Pay off car/personal loans early. Limit credit card use to under 30% limit. Delay new obligations.
- Clear high-interest debts (e.g., credit cards at 25% p.a.).
- Consolidate loans for lower rates.
- Boost income: Document rentals via HDB tenancy agreements.
- Time purchases post-bonus for 12-month average lift.
- Refinance existing mortgages if rates drop—check https://www.homejourney.sg/bank-rates.
Insider tip: For self-employed in Tanjong Pagar, use latest IRAS NOA for higher assessed income. Always consult Homejourney brokers for personalized advice.
Disclaimer: This is general guidance; seek professional financial advice. Regulations may change.
Homejourney: Your Trusted Partner for TDSR and Mortgages
Homejourney prioritizes safety with verified data and transparent tools. Calculate TDSR instantly at https://www.homejourney.sg/bank-rates#calculator.
- Compare DBS, OCBC, UOB, HSBC rates in one place.
- Submit one Singpass app for multi-bank offers.
- Track SORA live; test eligibility pre-application.
- Link to property search within budget.
Related: TDSR总债务偿还比率详解：使用Homejourney申请的好处 ">TDSR Benefits with Homejourney | Mortgage Age Limits Singapore: Max Tenure & Bank Rates Guide | Homejourney ">Mortgage Age Limits.
Start at https://www.homejourney.sg/bank-rates—your safe path to homeownership.
TDSR Singapore FAQ
What is the TDSR limit in Singapore?
55% of gross monthly income for all debts.[5]
Does TDSR apply to refinancing?
Yes, all property loans including refis.[1]
How does variable income affect TDSR calculation?
30% haircut on bonuses/commissions averaged over 12 months.[2]
Can banks waive TDSR?
No, MAS mandates strict compliance.[5]
What counts as debt in TDSR?
Mortgages, car loans, cards (5% min), personal/renovation/student loans.[1]
How to check TDSR before buying?
Use Homejourney's free calculator: https://www.homejourney.sg/bank-rates#calculator.
Homejourney builds trust through verified tools and customer-first support. Calculate your mortgage eligibility TDSR today and find safe properties via https://www.homejourney.sg/search.
