The Monetary Authority of Singapore caps your total monthly debt repayments at 55% of your gross monthly income for new housing loans. That ratio is the Total Debt Servicing Ratio, or TDSR: monthly debt obligations divided by gross monthly income, times 100%. Lenders apply MAS stress-test interest rates and income haircuts when they run the numbers.
TL;DR:
- Banks assess the proposed mortgage at a MAS interest rate floor and count existing property loans, car, student, renovation, card, and other monthly debts.
- Lenders may cut variable and rental income by 30%, while eligible financial assets face prescribed haircuts and are amortized over 48 months.
- The 55% cap applies to purchase paperwork dated December 16, 2021, or later; qualifying earlier paperwork may use the former 60% threshold.
- HDB flat and executive condominium buyers also face the Mortgage Servicing Ratio, which limits mortgage payments alone; private property buyers face the broader TDSR.
- Refinancing an owner occupied housing loan is generally exempt, but investment property refinancing may still face assessment unless the borrower follows a debt reduction plan.
Table of Contents
- What TDSR is and who must meet it in Singapore
- How lenders compute TDSR: formula, debts, income and rate floors
- The 55% threshold, effective dates and exemptions
- How TDSR works with LTV, MSR and loan tenure
- Worked example: calculate your TDSR step by step
- Our view: prepare for the TDSR check before you pick a unit
- Ready to match your borrowing limit to a home?
- FAQ
What TDSR is and who must meet it in Singapore
TDSR is a ceiling on how much of your income can go to debt each month. MAS requires banks to calculate it for loans to purchase property, loans secured by property, and refinancing of such loans. The rule covers individuals, sole proprietors and vehicles set up to buy property. Companies are assessed under different credit standards.
If you are buying an HDB flat or an executive condominium, a second limit, the Mortgage Servicing Ratio (MSR), also applies. MSR looks only at the mortgage. For private property, TDSR is usually the tighter constraint, because it counts your car loan, credit cards and other debts alongside the mortgage. The policy goal, as MAS has explained, is to keep mortgage repayments at a prudent share of income when interest rates and incomes shift.
How lenders compute TDSR: formula, debts, income and rate floors
MAS sets the formula in its Calculating TDSR explainer: (total monthly debt obligations ÷ gross monthly income) × 100%. The formal parameters and verification duties for banks sit in Notice 645.
Monthly debt obligations include:
- The property loan you are applying for
- Other property loans you already hold
- Car loans and student loans
- Renovation loans
- Credit card and other unsecured borrowing
Banks do not use today's interest rate for the new loan. They apply a medium-term interest rate floor to compute the monthly instalment, so your assessed repayment can be higher than what you will actually pay. The floor differs for residential and non-residential property.
Income gets similar caution. Variable and rental income may be subject to income haircuts, so the amount counted can be lower than the income received. Eligible financial assets can also be counted, with prescribed haircuts and amortization over 48 months.
MAS prescribes both the interest rate floors and the income haircuts, so every bank starts from the same rulebook.
Expect your bank to ask for payslips, CPF contribution records and tenancy agreements, and to check your credit bureau report for debts you may have forgotten.
The 55% threshold, effective dates and exemptions
The 55% cap applies where the Option to Purchase is granted on or after 16 December 2021, or where the Sale and Purchase agreement is signed on or after that date if there was no OTP. MAS transitional arrangements let earlier OTP or S&P dates use the previous 60% threshold, so bring your paperwork to your bank.
Key exceptions:
- Refinancing an owner-occupied housing loan is generally exempt from the 55% TDSR.
- Refinancing an investment property can still be assessed, with a debt-reduction plan as an alternative route.
- Mortgage equity withdrawal loans may be carved out when the aggregated LTV meets MAS’s exemption criteria.
- Bridging loans repaid within six months and certain collateral-pool loans below set property values are excluded.
How TDSR works with LTV, MSR and loan tenure
TDSR tells you whether you can service the debt. Other caps tell you how much the bank will lend against the property. MAS's loan tenure and loan-to-value limits show that the LTV limit falls as the number of outstanding housing loans you hold rises. A lower LTV means a bigger downpayment, paid partly in cash, so your savings matter as much as your income.
Tenure caps also shape your instalment. The maximum tenure depends on the type of property, and a shorter tenure pushes up the monthly repayment that TDSR measures. Choosing a longer permitted tenure can ease the ratio, though you pay more interest over time. If you are still weighing loan types, our guide to home loan options in Singapore is a good companion, and our SORA vs SIBOR explainer covers what to ask your bank about rates.
Worked example: calculate your TDSR step by step
Here is an illustrative case, not market data. Say you earn S$12,000 a month in fixed salary, have a S$800 car loan and S$200 in card commitments, and the bank assesses your new mortgage instalment at S$5,000 using the rate floor.
- Add your monthly debts: S$5,000 + S$800 + S$200 = S$6,000.
- Confirm gross monthly income: S$12,000 (fixed salary, so no haircut).
- Divide and multiply: S$6,000 ÷ S$12,000 × 100% = 50%.
- Compare with the cap: 50% is under 55%, so this loan passes.
If your result came out at 60%, the bank would have to reduce the loan until the ratio falls to 55% or lower, which means a bigger downpayment from you.
Pro Tip: Pull your own credit bureau report before applying, and bring your OTP or S&P dates and any tenancy agreements so rental income is documented from day one.
Our view: prepare for the TDSR check before you pick a unit
Most buyers start with the unit and work backward to the loan. We think it works better the other way round. Gather your payslips, CPF records, credit bureau statement and any OTP or S&P paperwork first, then shortlist homes your assessed ratio can support. A buyer who arrives with clean documents moves faster and negotiates with more confidence. Because we know the local market and the 2 to 4 bedroom layouts well, we can walk you through payment schedules, and our progressive payment scheme guide shows how those timelines work. If you also plan to buy beyond One Marina Gardens, this partner guide on what foreigners can buy is a useful reference.
— Velisa
Ready to match your borrowing limit to a home?
Once your TDSR and lender checks are in order, we can show you what fits. Our team can tailor financing guidance to your numbers.
- Browse the available homes on our units page
- Check current figures on our price list
- Book a showflat visit and bring your loan documents so we can talk through your numbers
Start with the unit listings and book your showflat today.
This article is general information, not a substitute for advice from a qualified financial advisor. Consult a qualified financial professional about your own circumstances before acting on anything here.
FAQ
Is the current TDSR limit 55% or 60%?
The current limit is 55% for new housing loans. The older 60% threshold only applies where the OTP or S&P date falls before 16 December 2021 under MAS's transitional arrangements. Check your paperwork dates with your bank.
How is TDSR calculated?
Banks use a medium-term interest rate floor for the mortgage and apply a 30% haircut to variable and rental income, as set out in MAS's calculation guidance.
What is the maximum loan-to-value ratio (LTV) in Singapore?
It depends on how many housing loans you already have outstanding. The limit falls with each additional loan, as shown in MAS's LTV limits. Ask your bank which tier applies to you.
What is the maximum amount I can borrow with a personal loan in Singapore?
MAS sets minimum income requirements and regulatory credit limits for non-card unsecured credit facilities. Any personal loan also counts as a monthly debt obligation in your TDSR, so it reduces what you can borrow for a home.