TDSR & MSR — How Much Can You Borrow for a Property in Singapore?

Before you start viewing properties, the most important question to answer is: How much can I actually borrow? In Singapore, two key frameworks govern your borrowing power — the Total Debt Servicing Ratio (TDSR) and the Mortgage Servicing Ratio (MSR).

Understanding these ratios is essential for realistic budgeting and ensuring your home loan application is approved.

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What Is TDSR (Total Debt Servicing Ratio)?

The TDSR framework, introduced by the Monetary Authority of Singapore (MAS) in June 2013, limits the proportion of your gross monthly income that can go towards all debt repayments — not just your mortgage.

The TDSR Limit: 55%

Your total monthly debt obligations must not exceed 55% of your gross monthly income.

This means if you earn $10,000/month gross, your total monthly debt repayments (including mortgage, car loan, personal loans, credit card minimum payments, student loans, etc.) cannot exceed $5,500.

What Counts as "Debt" Under TDSR?

| Debt Type | How It's Counted |
|---|---|
| New property mortgage | Monthly instalment at stress test rate |
| Existing property mortgage(s) | Monthly instalment |
| Car loan | Monthly instalment |
| Student loan | Monthly instalment |
| Personal loan | Monthly instalment |
| Renovation loan | Monthly instalment |
| Credit card debt | 3.5% of outstanding balance per month |
| Credit facilities (overdraft) | 3.5% of credit limit per month |
| Guarantor obligations | Included as debt |

> Credit card trap: Even if you pay your credit card in full each month, if you have a high credit limit, some banks may factor in a portion. To be safe, reduce your credit limits before applying for a mortgage.

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What Is MSR (Mortgage Servicing Ratio)?

The MSR is a stricter limit that applies specifically to:

  • HDB flats (regardless of loan type)

  • Executive Condominiums (ECs) purchased directly from developers

    • The MSR Limit: 30%

    Your monthly mortgage instalment must not exceed 30% of your gross monthly income.

    MSR only covers the property mortgage — it does not include other debts. However, you must also satisfy the TDSR requirement simultaneously.

    When Does MSR Apply?

    | Property Type | MSR Applies? | TDSR Applies? |
    |---|---|---|
    | HDB flat (bank loan) | Yes (30%) | Yes (55%) |
    | HDB flat (HDB loan) | No | No |
    | EC (from developer) | Yes (30%) | Yes (55%) |
    | EC (resale, after MOP) | No | Yes (55%) |
    | Private condo/landed | No | Yes (55%) |

    > Key insight: HDB loans are exempt from both TDSR and MSR. This is one reason some buyers prefer HDB loans despite the higher interest rate (2.6% fixed) — they can borrow more relative to income.

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    The Stress Test Rate

    When calculating TDSR and MSR, banks do not use the actual interest rate of your loan. Instead, they use a stress test rate — a higher rate to ensure you can still afford repayments if interest rates rise.

    Current Stress Test Rates

    | Loan Type | Stress Test Rate |
    |---|---|
    | Floating rate loan | 4.0% p.a. or actual rate + 2%, whichever is higher |
    | Fixed rate loan (during fixed period) | 4.0% p.a. or actual rate + 2%, whichever is higher |

    > MAS reviews the stress test floor rate periodically. As of 2025, the floor rate is 4.0% (revised from 3.5% in September 2022).

    This means even if your actual mortgage rate is 3.0%, the bank calculates your monthly instalment at 4.0% for TDSR/MSR purposes.

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    Worked Examples

    Example 1: Single Buyer, Private Condo

    Profile:

  • Gross monthly income: $8,000

  • Car loan: $800/month

  • Credit card: no outstanding balance, low limit

  • No other debts

    • TDSR calculation:

  • Maximum total debt: 55% × $8,000 = $4,400/month

  • Less car loan: $4,400 − $800 = $3,600/month available for mortgage

    • Maximum loan amount:

  • Monthly payment of $3,600 at stress test rate of 4.0%, 30-year tenure

  • Maximum loan: approximately $753,000

  • With 75% LTV: Maximum property price = $753,000 ÷ 0.75 = approximately $1,004,000

    • Example 2: Couple Buying HDB (Bank Loan)

    Profile:

  • Combined gross monthly income: $12,000

  • No existing debts

    • MSR calculation (more restrictive for HDB):

  • Maximum mortgage: 30% × $12,000 = $3,600/month

    • TDSR calculation:

  • Maximum total debt: 55% × $12,000 = $6,600/month

  • Since MSR is more restrictive, mortgage is capped at $3,600/month

    • Maximum loan amount:

  • Monthly payment of $3,600 at stress test rate of 4.0%, 25-year tenure

  • Maximum loan: approximately $631,000

  • With 75% LTV: Maximum property price = $631,000 ÷ 0.75 = approximately $841,000

    • Example 3: High Income but Heavy Debt

    Profile:

  • Gross monthly income: $15,000

  • Car loan: $1,500/month

  • Personal loan: $500/month

  • Credit card outstanding: $20,000 (counted as 3.5% × $20,000 = $700/month)

    • TDSR calculation:

  • Maximum total debt: 55% × $15,000 = $8,250/month

  • Less existing debts: $8,250 − $1,500 − $500 − $700 = $5,550/month for mortgage

    • Maximum loan amount:

  • Monthly payment of $5,550 at 4.0%, 30-year tenure

  • Maximum loan: approximately $1,162,000

  • With 75% LTV: Maximum property price ≈ $1,549,000

    • Despite the high income, existing debts significantly reduce borrowing power.

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    How to Improve Your Borrowing Power

    1. Pay Off Existing Debts

    The most effective way. Every $1,000 of monthly debt you eliminate adds approximately $209,000 to your maximum loan (at 4.0%, 30-year tenure).

    Priority order:

  • Pay off credit card balances entirely

  • Pay off personal loans

  • Reduce credit card limits (even if balance is zero)

  • Pay off car loan if possible

    • 2. Increase Your Income (Documented)

    Banks use your documented gross income:

  • Salaried employees: Base salary + fixed allowances. Variable bonus is typically counted at 30–70%

  • Self-employed: Last 2 years' average income based on tax assessments (NOA)

  • Commission-based: Last 2 years' average commission income

  • Rental income: 70% of gross rental income

    • Tips:

  • Ask your employer for a letter confirming your total compensation package

  • Ensure your latest Notice of Assessment (NOA) reflects your actual income

  • If you have rental income from existing properties, ensure it's declared

    • 3. Extend Your Loan Tenure

    A longer tenure means lower monthly payments, which improves your TDSR ratio. However:

  • Maximum tenure for private property: 30 years (or up to age 65, whichever is shorter)

  • Maximum tenure for HDB: 25 years (bank loan) or 25 years (HDB loan)

  • If you are 35, your maximum tenure for a private property is 30 years (age 65 limit)

  • If you are 45, your maximum tenure is only 20 years

    • 4. Add a Co-Borrower

    Adding a spouse or family member as a co-borrower combines both incomes for TDSR calculation. However:

  • The co-borrower's existing debts are also included

  • The co-borrower becomes jointly liable for the loan

  • The co-borrower's future borrowing capacity is affected

    • 5. Reduce Your Credit Card Limits

    Many people maintain high credit card limits they don't need. Some banks factor in unused credit limits as potential debt. Reducing your limits before applying for a mortgage can help.

    6. Choose the Right Loan Structure

  • Private property: 75% LTV (no existing loans) or 45% LTV (with existing loan)

  • HDB (bank loan): 75% LTV

  • HDB (HDB loan): 80% LTV

    • If you have no existing property loans, you get the best LTV ratio, which means you need less cash upfront.

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    LTV (Loan-to-Value) Limits

    The LTV ratio determines the maximum percentage of the property value you can borrow.

    | Scenario | LTV Limit | Minimum Cash Down Payment |
    |---|---|---|
    | No existing property loan | 75% | 5% (private) / 10% (HDB bank loan) |
    | 1 existing property loan | 45% | 25% |
    | 2+ existing property loans | 35% | 25% |

    > For HDB loans: LTV is 80%, with a minimum down payment of 20% (which can be fully paid from CPF OA). No cash outlay needed.

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    TDSR Exemptions

    Certain situations are exempt from TDSR:

  • HDB loans — governed by HDB's own credit assessment

  • Refinancing with no cash out and no increase in loan amount

  • Owner-occupied property where the borrower is an individual (not entity) — still subject to TDSR but may qualify for relaxation under specific circumstances

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    Practical Tips Before Applying

  • Get an In-Principle Approval (IPA) — apply to your bank for a non-binding loan approval before you start viewing properties. This confirms how much you can borrow.
  • Use online calculators — banks like DBS, OCBC, and UOB offer online TDSR calculators. Use them for a rough estimate.
  • Clean up your credit report — check your CBS (Credit Bureau Singapore) report for accuracy. Errors or unpaid bills can affect your application.
  • Time your application — if you're expecting a salary increase or bonus, wait for the updated payslip before applying.
  • Compare bank offers — different banks may have slightly different approaches to income assessment. A mortgage broker can help you find the best fit.

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    Frequently Asked Questions

    Can I exceed the 55% TDSR limit?

    No. The 55% TDSR limit is a regulatory requirement imposed by MAS. Banks cannot approve loans that breach this limit, regardless of your assets or other financial strength.

    Does rental income count towards my income for TDSR?

    Yes, but only at 70% of gross rental income. You will need to provide the stamped tenancy agreement as proof.

    What if I'm self-employed?

    Banks typically use the average of your last 2 years' income based on your IRAS Notice of Assessment (NOA). Some banks may use 1-year NOA with additional documents.

    Does my age affect how much I can borrow?

    Yes, indirectly. Your maximum loan tenure is capped at age 65 (or age 75 for the loan). If you're older, your maximum tenure is shorter, which means higher monthly payments and a lower maximum loan.

    Can I borrow from multiple banks for one property?

    No. You can only have one mortgage per property. However, you can refinance to a different bank after your lock-in period.

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    Conclusion

    TDSR and MSR are the gatekeepers to your property purchase in Singapore. Understanding these ratios — and taking proactive steps to optimise your borrowing power — can mean the difference between affording your dream property and falling short.

    Before committing to any property, get an In-Principle Approval from your bank, clear unnecessary debts, and work with a knowledgeable property agent who can help you find the right property within your budget.

    Disclaimer: This guide is for informational purposes only. Lending policies, stress test rates, and regulatory frameworks are subject to change. Always consult with your bank or a licensed mortgage advisor for personalised advice.

    References

  • Monetary Authority of Singapore (MAS) — [Property Loan Rules](https://www.mas.gov.sg/regulation/explainers/new-housing-loan-rules)

  • Central Provident Fund Board (CPF) — Housing Withdrawal Limits

  • Credit Bureau Singapore (CBS) — Credit Report Services