The TDSR framework was introduced by MAS in 2013 to prevent buyers from taking on excessive debt relative to their income. Every bank applying for a property loan in Singapore must check that your total debt repayments — including the new mortgage — stay within the threshold. Understanding it precisely lets you plan your purchase rather than get surprised at the point of application.
The two ratios you need to know
TDSR and MSR are different limits — and both may apply to you.
| Ratio | Threshold | Applies to | What it counts |
|---|---|---|---|
| TDSR (Total Debt Servicing Ratio) | 55% of gross monthly income | All property loans for individuals | All monthly debt obligations |
| MSR (Mortgage Servicing Ratio) | 30% of gross monthly income | HDB flats (from HDB or bank) + ECs within MOP from developer | Property loan repayments only |
If you're buying an HDB flat or an EC directly from the developer, both ratios apply and you must satisfy both. For private property, only TDSR applies. In practice, the MSR's 30% cap is often the binding constraint for HDB buyers — you can have a TDSR under 55% while still breaching the MSR 30% limit.
What counts in TDSR
Every debt obligation is included — including ones most buyers overlook.
The new mortgage you're applying for, plus any existing property loans (investment properties, overseas property loans, etc.). All monthly repayments counted in full.
Monthly car loan or hire-purchase instalments are included in full. A $1,200/month car loan meaningfully reduces your eligible mortgage quantum.
Outstanding study loans — including those from banks — count toward TDSR. CPF Education Scheme loans are not counted (CPF repayments are excluded from TDSR).
5% of your total outstanding credit card balance is included as a monthly debt obligation. A $20,000 credit card balance adds $1,000 to your monthly TDSR count — even if you pay it off monthly. Carrying a balance matters.
All outstanding personal loan instalments and renovation loans are included. BNPL (buy now, pay later) facilities may also be counted depending on the lender's assessment.
Repayments for CPF Education Scheme loans, CPF housing grants repaid to CPF, and other CPF obligations do not count toward TDSR. HDB loan repayments made via CPF are also excluded from TDSR calculations.
Income treatment
Not all income counts at full value — variable income is haircut.
| Income type | How it's counted |
|---|---|
| Fixed salary (regular employment) | 100% of gross monthly income |
| Variable income (commissions, bonuses, overtime) | Typically 70% of average over 12 months |
| Rental income (from investment properties) | Typically 70% of rental income, after deducting property-related expenses |
| Self-employment / director's income | Based on average over 2 years (NOA), at bank's discretion — often haircut applied |
| Part-time or freelance income | At bank's discretion; may require 2-year history and NOA evidence |
For variable-rate property loans, banks apply a stress test: they calculate your TDSR using the higher of (a) the prevailing rate plus 0.5 percentage points, or (b) a medium-term interest rate specified by MAS. This means your TDSR is assessed at a higher rate than your actual loan rate — so the loan quantum you qualify for is lower than the headline rate suggests.
The calculation
How to calculate your own TDSR before approaching a bank.
TDSR formula: (Total monthly debt obligations ÷ Gross monthly income) × 100
Example: HDB flat purchase, couple with combined income
Combined gross income: $10,000/month. Car loan: $800/month. Credit card balance $10,000 → $500 TDSR count. Proposed HDB mortgage: $2,000/month. Total obligations: $3,300. TDSR: 33%. MSR for the mortgage alone: 20%. Both under threshold — eligible.
TDSR 33% (under 55%) and MSR 20% (under 30%) — passes both testsExample: Same couple, but with outstanding renovation loan
Same income ($10,000). Car loan: $800. Credit card: $500. Renovation loan: $600/month remaining. Proposed mortgage: $2,400/month. Total: $4,300. TDSR: 43%. MSR: 24%. Still within TDSR 55% — but the renovation loan has reduced available mortgage quantum by $600/month of repayment capacity.
TDSR 43% — eligible but renovation loan reduces mortgage headroomExample: Single buyer, car loan + credit card, private property
Gross income: $6,000/month. Car loan: $1,200/month. Credit card balance $30,000 → $1,500 TDSR count. Proposed mortgage: $2,000/month. Total: $4,700. TDSR: 78.3%. Exceeds 55% — loan rejected. Must either reduce the loan quantum, clear debts, or find a co-borrower.
TDSR 78% — exceeds 55% limit, loan not approvable at this quantumImproving your TDSR
Four ways to create more TDSR headroom before applying.
At 5% of outstanding balance, a $30,000 credit card balance adds $1,500/month to your TDSR count — equivalent to a $300,000+ mortgage repayment at current rates. Clearing this before applying significantly improves your position.
If you're within 6–12 months of finishing a car loan, timing your property purchase after the loan ends can meaningfully increase the mortgage quantum you qualify for. The monthly saving goes directly into TDSR headroom.
Adding a spouse or family member as a co-borrower includes their income in the TDSR calculation, expanding the eligible loan quantum. Both borrowers must be willing to be legally responsible for the loan.
A larger cash down payment reduces the loan amount and therefore the monthly repayment. Extending loan tenure (to the permitted maximum based on age and property lease) also reduces monthly repayments — though it increases total interest paid.
Banks review your credit report at the point of application. A renovation loan, car purchase, or new credit card taken out in the months before applying can change your TDSR and result in a lower loan quantum than you expected — or a rejection. If you're planning to buy property in the next 6–12 months, avoid taking on new debt unless absolutely necessary.
What mortgage can you actually get based on your TDSR?
Franky works through your income, existing debts, and property price to calculate your TDSR and MSR, and gives you a realistic picture of the loan quantum you're eligible for.
Talk to Franky →