TDSR and MSR Singapore — Simply Explained 2026
The two financing rules that determine how much you can borrow for a Singapore property purchase — explained clearly with examples.
What Are TDSR and MSR?
Singapore has two key rules that limit how much you can borrow when buying property. Understanding both is essential before you calculate your budget or approach any bank.
TDSR — Total Debt Servicing Ratio: Caps your total monthly debt repayments at 60% of your gross monthly income. This includes your mortgage plus all other debts — car loan, personal loan, credit card minimums, student loans.
MSR — Mortgage Servicing Ratio: Caps your monthly housing loan repayment at 30% of your gross monthly income. Applies only to HDB flats and Executive Condominiums. When MSR applies, it is always the stricter and binding constraint.
TDSR vs MSR — Side by Side
| TDSR | MSR | |
|---|---|---|
| Applies to | All property types | HDB and EC only |
| Cap | 60% of gross income | 30% of gross income |
| Covers | All debts including mortgage | Housing loan only |
| When both apply | MSR is the binding constraint | Always stricter for HDB/EC |
| Stress test rate | 4% | 4% |
TDSR — How It Works
TDSR applies to every property purchase in Singapore — HDB, EC, and private.
Formula: (All monthly debt repayments including new mortgage) ÷ Gross monthly income ≤ 60%
TDSR ceiling: 60% × S$10,000 = S$6,000/month for all debts
Existing car loan: S$1,000/month
Available for mortgage: S$5,000/month
Maximum loan at 4% over 25 years: approximately S$950,000
The stress test: Banks calculate your affordability at 4% interest rate even if actual rates are lower. In 2026 many packages are below 2%, but the stress test ensures you can still service the loan if rates rise. At 4% over 25 years, every S$1,000 of monthly repayment capacity supports approximately S$190,000 in loan.
MSR — How It Works
MSR applies only to HDB flat and EC purchases. It is stricter than TDSR and always the binding constraint for these property types.
Formula: Monthly housing loan repayment ÷ Gross monthly income ≤ 30%
MSR ceiling: 30% × S$8,000 = S$2,400/month for housing loan
Maximum HDB loan at 4% over 25 years: approximately S$456,000
TDSR ceiling would be S$4,800/month — but MSR at S$2,400 is the binding constraint
How Existing Debts Reduce Your Borrowing Power
| Monthly Debt | Income S$10,000 | Mortgage Available | Max Loan (approx) |
|---|---|---|---|
| No debts | S$6,000 TDSR ceiling | S$6,000 | S$1,140,000 |
| Car loan S$1,000 | S$6,000 ceiling | S$5,000 | S$950,000 |
| Car + personal loan S$2,000 | S$6,000 ceiling | S$4,000 | S$760,000 |
| Car + personal + credit card S$2,500 | S$6,000 ceiling | S$3,500 | S$665,000 |
A S$2,500/month debt burden reduces your maximum loan by S$475,000. Clearing debts before applying for a mortgage significantly increases your buying power.
Joint Purchases and Combined Income
When buying with a spouse or co-borrower, banks assess the combined income and combined debts of all borrowers.
Combined car loan: S$1,500/month
TDSR ceiling: S$9,000 − S$1,500 = S$7,500/month for mortgage
Maximum private loan: approximately S$1,425,000
MSR for HDB/EC: 30% × S$15,000 = S$4,500/month → approximately S$855,000 max HDB loan
Practical Tips for Maximising Your Loan
- Clear high-interest debts first — personal loans and credit card balances reduce TDSR headroom significantly
- Sell your car before applying — car loans are one of the biggest TDSR reducers for Singapore buyers
- Include all income sources — bonuses, commissions, and rental income can often be included (typically at 70% of annualised amount)
- Get IPA from multiple banks — different banks assess income differently, especially for variable income earners
- Don't apply for new credit — new loan or credit card applications shortly before your mortgage application affect credit assessments
Frequently Asked Questions
Does TDSR apply to HDB concessionary loans?
No — HDB concessionary loans (SC only) are not subject to TDSR. However MSR still applies, capping your monthly repayment at 30% of income. HDB also has its own affordability assessment.
What counts as gross income for TDSR?
Fixed monthly salary, variable income averaged over 12 months at 70%, rental income at 70% of gross rental, and investment income in some cases. Your mortgage broker can advise on what each bank accepts.
Can I borrow more than TDSR allows if I pay more cash?
TDSR constrains only the loan amount — not the purchase price. If you have sufficient cash to reduce the loan to within TDSR limits, you can purchase at any price.
Does TDSR change if interest rates change?
No — the stress test rate is fixed at 4% regardless of actual market rates. The TDSR rule itself is set by MAS and only changes if MAS updates its guidelines.
What if I am self-employed?
Self-employed income is assessed from your Notice of Assessment from IRAS for the past 2 years. Variable income is averaged and may be assessed at a lower percentage than fixed salary.
Information current as of 2026. TDSR and MSR rules are set by MAS and subject to change. Always verify with your bank or mortgage broker for the most current assessment criteria.
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