The Total Debt Servicing Ratio (TDSR Singapore) is one of the most important rules that decides how much you can borrow for a home loan in Singapore. It directly affects your mortgage eligibility, whether you are buying your first BTO in Punggol, upgrading to a condo in Bishan, or refinancing an existing loan in Tampines.
This definitive Homejourney guide explains what TDSR is, how the 55% TDSR limit works, how banks calculate it, and what you can do to improve your borrowing power while staying financially safe.
Table of Contents
- What Is TDSR in Singapore? (Simple Definition)
- Why MAS Introduced TDSR and the 55% Limit
- TDSR vs MSR: Key Differences for HDB, EC and Private Property
- How TDSR Is Calculated (Step-by-Step)
- Real TDSR Calculation Examples for Singapore Buyers
- How TDSR Affects Your Mortgage Eligibility
- TDSR, Interest Rates and Stress-Testing (SORA Context)
- Improving Your TDSR and Borrowing Capacity
- Special Situations: Self-Employed, Variable Income, Joint Borrowers
- TDSR and Refinancing Existing Home Loans
- Using Homejourney Tools to Check TDSR and Mortgage Eligibility
- Practical Tips from a Singapore Local
- FAQ: TDSR, MSR and Mortgage Eligibility in Singapore
What Is TDSR in Singapore? (Simple Definition)
Total Debt Servicing Ratio (TDSR) is a rule set by the Monetary Authority of Singapore (MAS) that limits how much of your gross monthly income can go towards repaying all your loans combined — including your new housing loan.
By MAS rules, your TDSR must not exceed 55% of your gross monthly income.[4][2][3]
In formula form:
TDSR = (Total Monthly Debt Obligations / Gross Monthly Income) × 100%[2]
"Total Monthly Debt Obligations" includes:
- Existing home loans
- Car loans
- Personal loans
- Education loans
- Renovation loans
- Credit card balances (typically converted to an assumed monthly repayment)
- Any new property loan you are applying for
So if you are earning $8,000 a month and your total monthly debt repayments (including the new mortgage) are $4,000, your TDSR is 50%. To qualify for a housing loan from DBS, OCBC, UOB, HSBC, Standard Chartered and other banks, this must be ≤ 55%.[2][3][4]
Why MAS Introduced TDSR and the 55% Limit
MAS introduced the TDSR framework in 2013 to prevent households from over-borrowing and to keep the property market stable.[2][4] Singapore had seen periods where property prices rose very quickly; TDSR is part of a broader set of cooling measures to reduce systemic risk.
The framework has been tightened over time. In December 2021, MAS reduced the TDSR limit from 60% to 55% of gross monthly income.[2][4] This lower TDSR limit reduces maximum borrowing, especially for heavily leveraged buyers and investors.
From a Singaporean's day-to-day perspective, TDSR:
- Prevents you from taking on a home loan that will eat up too much of your income
- Forces you (and the banks) to consider all your other debts before approving a mortgage
- Helps ensure you can still cope if interest rates rise, or if your income is disrupted
As someone who has seen friends in Sengkang and Clementi struggle when interest rates shot up, the 55% cap is often a blessing in disguise. It may feel restrictive when you are trying to stretch for a bigger condo, but it protects your long-term financial safety.
TDSR vs MSR: Key Differences for HDB, EC and Private Property
In Singapore, you will often hear TDSR mentioned together with MSR (Mortgage Servicing Ratio).
Mortgage Servicing Ratio (MSR) caps your monthly property loan repayments alone (just the housing loan) to a maximum of 30% of your gross monthly income for:
- HDB flats (new or resale) financed by banks
- Executive Condominiums (ECs) bought from developers before the Minimum Occupation Period (MOP) ends
TDSR, on the other hand, applies to all property loans regardless of property type, and considers all your debts.[2][3][4]
Quick Comparison: TDSR vs MSR
When Each Rule Applies
For an HDB upgrader in Jurong West looking at a $1.5 million OCR condo, TDSR is usually the main constraint. But if you are buying a BTO in Tengah or resale flat in Ang Mo Kio using a bank loan, both MSR (30%) and TDSR (55%) will be checked.
How TDSR Is Calculated (Step-by-Step)
Officially, MAS defines TDSR as the ratio of your total monthly debt obligations to your gross monthly income, expressed as a percentage.[2][4] But banks follow detailed rules when calculating this.
Step 1: Determine Gross Monthly Income
Gross monthly income normally includes:
- Basic salary (before employee CPF contributions)
- Fixed allowances (e.g. transport allowance)
- For variable income (commission, bonuses, freelance): banks usually apply a haircut (commonly 30%) and average over 12 months
- Rental income, also after a haircut (often 30%)
For example, if you work in Raffles Place earning $7,000 basic plus about $2,000 variable commission, a bank might take $2,000 × 70% = $1,400 as usable variable income, giving a gross income of $8,400 for TDSR assessment (exact policy varies by bank).
Step 2: Add Up All Monthly Debt Obligations
MAS guidelines require banks to include all of the following when computing TDSR:[2][4]
- Existing housing loans (including overseas properties)
- Car loans
- Education loans
- Renovation loans
- Personal loans
- Credit card and overdraft balances (converted into a notional monthly repayment)
- Any new housing loan you are applying for, calculated using a mandated “stress-test” interest rate
Step 3: Apply the Stress-Test Interest Rate
To prevent borrowers from being overly optimistic, MAS requires banks to compute the monthly instalment of your new loan using a minimum medium-term interest rate floor (a conservative rate), not the current promotional rate.[2]
Since September 2022, this stress-test rate for residential property loans has been higher (e.g. 4% p.a. or prevailing rate, whichever is higher; exact rate is set by each bank but must meet MAS' minimum floor).[2] This is why the loan you qualify for may be lower than what a simple calculator using 2–3% interest suggests.
Step 4: Compute TDSR and Check Against 55% Limit
Once total monthly debt obligations and gross income are known, the bank calculates:
TDSR = (Total Monthly Debt Obligations / Gross Monthly Income) × 100%[2][4]
If the result is above 55%, the bank must either:
- Reduce the maximum loan amount (so that the monthly repayment falls), or
- Reject the application if the numbers still cannot meet 55%
Real TDSR Calculation Examples for Singapore Buyers
Let’s walk through some examples that mirror real situations I frequently see among buyers in areas like Punggol, Yishun and Queenstown.
Example 1: Single Buyer, No Other Debts (Private Condo)
Profile:
- Age: 32
- Gross monthly income: $7,000 (salaried)
- No car loan, no personal loans, pays credit cards in full each month
- Looking at a $1.2 million private condo near Tanah Merah MRT
Assume:
- Max LTV from bank: 75% (so maximum potential loan: $900,000)
- Stress-test interest rate: 4% p.a.
- Loan tenure: 25 years
Approximate stressed monthly instalment for $900,000 at 4% over 25 years is about $4,750–$4,800.
TDSR computation:
- Total monthly debt obligations = $4,800 (only the new housing loan)
- Gross income = $7,000
- TDSR ≈ 4,800 / 7,000 = 68.6% → Above 55%, not allowed
The bank must reduce the loan amount until the monthly instalment falls below 55% of income.
Maximum allowable monthly debt under TDSR limit:
- 55% of $7,000 = $3,850
So the maximum mortgage instalment at stress-test rate is about $3,850. Back-solving roughly, that supports a loan of around $720,000–$750,000 at 4% over 25 years. That means you must increase your downpayment or look for a lower-priced unit, maybe a city-fringe property closer to $1.0–$1.05 million instead of $1.2 million.
Example 2: Couple Buying HDB with Car Loan and Personal Loan
Profile:
- Combined gross income: $10,000 (both salaried, working near Raffles Place and One-North)
- Car loan: $800/month
- Personal loan: $500/month
- Considering a bank loan for a $700,000 HDB resale flat in Bishan
We must consider both TDSR and MSR.
Step 1 – TDSR limit:
- 55% of $10,000 = $5,500
- Existing debt = $800 + $500 = $1,300
- Maximum allowable monthly housing loan instalment under TDSR = $5,500 − $1,300 = $4,200
Step 2 – MSR limit (30%):
- 30% of $10,000 = $3,000
For this couple, MSR is more restrictive, so the housing instalment cannot exceed $3,000 even though TDSR allows up to $4,200.
At a 4% stress-test rate over 25 years, a $3,000 monthly instalment roughly supports a loan of around $560,000–$580,000. On a $700,000 flat, they will need about $120,000–$140,000 more in CPF/cash downpayment.
Example 3: Investor with Existing Condo Loan, Buying Second Property
Profile:
- Gross monthly income: $18,000 (mix of salary and bonus)
- Existing condo loan: $3,200/month (investment unit in Hougang, tenanted)
- No car loan, no personal loan
- Looking to buy another 1-bedder in the CBD for $1.5 million
Assume rental income from existing condo is $3,000/month, but bank uses 70%: $2,100 considered for TDSR.[2]
Effective income used for TDSR:
- Base income: $18,000
- Rental income added: $2,100
- Total = $20,100
TDSR limit at 55%: 55% × $20,100 ≈ $11,055 allowed for all debts.
Existing condo instalment: $3,200 → remaining room for new mortgages and other debts ≈ $7,855.
At 4% stress-test rate over 25 years, $7,855/month can support a fairly high loan quantum, potentially enough for 75% LTV on the new $1.5 million property, depending on exact bank assumptions, age, and whether a shorter tenure applies.
Snapshot Table: Income vs Maximum Debt Allowed Under TDSR 55%
Use this as a quick reference for how much total monthly debt (including housing instalment) is allowed at the TDSR limit.
To translate these figures into a maximum loan amount, banks will apply the stress-test rate, tenure, and your age. For a precise figure tailored to your profile, use Homejourney’s mortgage eligibility calculator at Mortgage Rates or Bank Rates .
How TDSR Affects Your Mortgage Eligibility
Your mortgage eligibility TDSR outcome is determined by three main factors:
- Your gross monthly income (higher income = more room for debt)
- Your existing debts (more debts = less room for a new loan)
- The planned loan size, tenure and stress-test interest rate
Common Situations Where TDSR Reduces Eligibility
- Car loan + condo dream clash: It is common to see couples in areas like Yishun or Sengkang with a $1,000+ car loan discovering they must reduce their property budget by $200k–$300k due to TDSR.
- Multiple credit cards and personal loans: Even if you always pay minimums, banks will impute a monthly repayment, which can meaningfully reduce your maximum loan.
- Short tenure due to age: Buyers in their late 40s or 50s may have to take shorter tenures, which increases monthly instalments and pushes TDSR higher.
How Banks Combine TDSR with Other Rules
When you apply for a home loan from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank or Citibank via Homejourney, the bank will assess:
- TDSR – 55% cap on all monthly debt obligations[2][4]
- MSR – 30% cap on property loan instalment for HDB and EC[2][3]
- LTV – how much of the property price or valuation you can borrow[3]
- Credit score & repayment history
- Employment stability and income type
Even if your TDSR is within 55%, a poor credit history or unstable income can still lead to rejection. Conversely, a strong profile with good credit and stable employment can sometimes make banks more flexible on other aspects within MAS’ guidelines.
TDSR, Interest Rates and Stress-Testing (SORA Context)
Most floating-rate home loans in Singapore today are pegged to SORA (Singapore Overnight Rate Average), the benchmark interest rate used widely by banks.[3] When SORA moves up, your actual monthly instalment changes.
However, for TDSR assessment, banks must use a medium-term interest rate floor that is often higher than current market rates.[2] This protects borrowers if rates increase in future.
The chart below shows recent interest rate trends in Singapore:
If you look at rate movements over the past year, you can see why MAS insists on stress-testing. Homejourney’s bank rates page tracks live 3M SORA and 6M SORA so that you can see how current rates compare to historical levels and time your refinancing or new purchase better: Bank Rates .
Improving Your TDSR and Borrowing Capacity
If your TDSR calculation shows that you are above the 55% limit, or you are too close for comfort, there are practical ways to improve your mortgage eligibility TDSR.
1. Reduce or Clear Short-Term Debts
This is the most straightforward and impactful lever.
- Pay off personal loans before applying for a home loan
- Consolidate credit card balances and clear them where possible
- Avoid taking new instalment plans (e.g. buy-now-pay-later on electronics or furniture) just before your loan application
From experience, a couple working in the CBD who cleared a $20,000 personal loan and $10,000 of card debt saw their TDSR drop significantly, enabling them to move from a 3-room flat in Bukit Merah to a mid-tier condo in Pasir Ris.
2. Reconsider Car Ownership
In Singapore, a car loan easily costs $800–$1,500 a month. That alone can consume a large part of your TDSR space. In mature estates like Bedok and Queenstown, many buyers choose to live near MRT stations (e.g. Bedok MRT, Queenstown MRT) to avoid owning a car and free up borrowing capacity for a better home.
3. Increase Income (or Use Joint Borrowers)
- Add a spouse or family member as a joint borrower and/or owner to boost combined gross income
- For self-employed or commission-based earners, ensure at least 12 months of stable income records to reduce the haircut impact
- Document rental income properly with tenancy agreements and bank statements
4. Adjust Property Budget and Loan Tenure
Sometimes the realistic option is to lower your property budget slightly (e.g. from $1.4 million to $1.2 million) or stretch your loan tenure (within MAS age limits) to reduce monthly instalments.
Do note that longer tenures increase total interest paid. Homejourney’s eligibility and affordability calculator at Mortgage Rates lets you test different property prices and tenures instantly so you can find a safe balance.
5. Time Your Application
Because banks will often look at your last 3–12 months’ income, consider timing your application when you have:
- Received your annual bonus (masthead months are often Dec–Mar for many industries)
- Stabilised a new job, ideally with at least 3 months of payslips
- Reduced temporary debts
Special Situations: Self-Employed, Variable Income, Joint Borrowers
Self-Employed and Business Owners
If you run a café in Tiong Bahru, a home-based business in Bukit Panjang, or a tech start-up in One-North, banks will usually:
- Use your last 2 years’ Notice of Assessment from IRAS
- Apply a haircut (often 30%) to your average income to account for fluctuations
- Assess business stability from bank statements and existing liabilities
This means your usable income for TDSR purposes may be lower than what you feel you really earn. Planning ahead — for example, keeping clean records and avoiding big new debts before applying — is critical.
Commission-Based and Gig Economy Workers
For property agents, insurance agents, and gig workers (e.g. PHV drivers or delivery riders), banks will typically:
- Average income over 12 months
- Apply a haircut to variable components
- Scrutinise CPF contributions and bank-in patterns
In practice, this means a Grab driver in Hougang or a sales executive in Orchard with volatile monthly earnings may qualify for a smaller loan than they expect, even if some months are very high.
Joint Borrowers and Income Nuances
Where two or more borrowers are involved (e.g. spouses, siblings):
- Gross incomes are combined for TDSR calculation
- All their debts are also aggregated
- Ownership and liability are shared, which affects future property purchases (e.g. ABSD exposure)
Joint applications can significantly increase your borrowing capacity, but for couples planning to own multiple properties in future, you may want to discuss ownership structure and long-term plans with a professional advisor.
TDSR and Refinancing Existing Home Loans
MAS allows certain flexibility for refinancing. According to MAS rules, TDSR still generally applies to new housing loans and refinancing, but owner-occupied homes can refinance even if TDSR is exceeded, subject to conditions and bank assessment.[2][4]
In practice, if you bought your flat or condo years ago (e.g. a 4-room flat in Woodlands or a condo in Hillview) and your income has fallen since then, you can often still refinance your owner-occupied property to enjoy a better rate, provided:
- You are not increasing your loan quantum (no cash-out), and
- You meet the bank’s internal credit and risk criteria
For investment properties, refinancing above the 55% TDSR threshold is harder and may require MAS approval in specific cases.[2]
Homejourney’s refinancing journey simplifies this by:
- Comparing current rates from DBS, OCBC, UOB, HSBC, Standard Chartered and more in one place at Bank Rates
- Letting you submit a single application through Singpass/MyInfo to multiple banks
- Connecting you with Homejourney Mortgage Brokers who can assess how TDSR affects your refinancing options
Using Homejourney Tools to Check TDSR and Mortgage Eligibility
To make TDSR and mortgage rules less intimidating, Homejourney builds tools that put safety and transparency first.
1. Mortgage Eligibility & TDSR/MSR Calculator
On the Homejourney bank rates page Bank Rates and the mortgage calculator section Mortgage Rates , you can:
- Key in your income, debts, and desired property price
- See your estimated TDSR and MSR instantly
- Estimate maximum affordable loan amount and monthly instalment
- Test different scenarios (e.g. clear car loan vs keep car, 25 vs 30-year tenure)
These calculators apply MAS rules and bank stress-testing assumptions to give realistic numbers, not just optimistic promo-rate estimates. They are designed to help you avoid over-committing and ensure a safe borrowing journey.
2. Bank Rates Comparison in One Place
Instead of manually checking each bank’s website, Homejourney lets you:
- Compare rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank on one page
- See fixed vs floating vs SORA-pegged packages side-by-side
- Filter by tenure, property type and lock-in period
