What Is TDSR? Singapore's 55% Limit Explained (2026)

Hand holding house keys with a house-shaped keychain in front of a staircase — The bank's limits, not the price, decide how much you can borrow. Photo: Jakub Żerdzicki on Unsplash

At a glance

TDSR limit: 55% of gross monthly income for all debt repayments
Stress-test rate: Higher of 4% or the bank's thereafter rate (5% floor for non-residential)
Variable and rental income: At least a 30% haircut; variable income averaged over 12 months
MSR (HDB flats, new ECs): Home loan repayment capped at 30% of gross monthly income
Applies to: Property loans from banks and financial institutions, not HDB loans

The short answer

TDSR, the Total Debt Servicing Ratio, is the MAS rule that stops banks lending you more than you can repay. Your total monthly debt repayments, including the home loan you are applying for, cannot exceed 55% of your gross monthly income. The bank works out the new loan’s instalment at a stress-test rate of at least 4%, not the rate you will actually pay. We checked the rules below against MAS pages on 14 October 2026.

How TDSR is calculated

The formula is simple:

TDSR = total monthly debt repayments ÷ gross monthly income × 100%

If the result is above 55%, the bank has to shrink the loan until it fits. The detail is in what goes on each side.

Part of the formula	What the bank counts
New property loan	Instalment at the higher of 4% a year or the bank’s thereafter rate
Other property loans	Existing instalments, unless the property is being sold or the loan is discharged
Other debts	Car, student and renovation loans, credit card and other secured or unsecured loans
Fixed income	Gross monthly salary before tax, excluding the employer’s CPF contribution
Variable income	Bonus, commission and allowances, averaged over 12 months, cut by at least 30%
Rental income	Only with a stamped tenancy agreement with at least 6 months left, cut by at least 30%
Financial assets	Can be turned into notional income over 48 months, after haircuts

The 4% floor applies to residential property and has been in place since 30 September 2022. For non-residential property, the floor is 5%. The “thereafter rate” is the highest rate the bank would charge over the loan, usually the rate after any lock-in period ends.

TDSR vs MSR

The Mortgage Servicing Ratio is a second, tighter test for some buyers.

	TDSR	MSR
Limit	55% of gross monthly income	30% of gross monthly income
Debts counted	All debts	Property loans only
Applies to	Every property loan from a bank or financial institution	HDB flats and ECs still within their MOP
HDB loans	Not applicable	HDB applies its own 30% cap, tested at 3%

Someone buying an HDB flat or a new EC with a bank loan faces both. With no other debts, 30% is far below 55%, so MSR sets the limit. A private condo buyer, or someone buying a resale EC after its MOP, faces TDSR alone. Our EC vs condo comparison shows how much difference that makes to the loan.

Worked example

A couple wants to buy a private condo with a 30-year bank loan.

Partner A earns a fixed S$7,000 a month.
Partner B earns a fixed S$4,000 plus commission averaging S$2,000 a month.
They have a car loan of S$900 a month.

Step 1: recognised income. The commission is cut by 30%, so S$1,400 counts. Total recognised income is S$7,000 + S$4,000 + S$1,400 = S$12,400.

Step 2: the 55% limit. 55% of S$12,400 is S$6,820 a month for all debts.

Step 3: room for the home loan. S$6,820 less the S$900 car loan leaves S$5,920.

Step 4: maximum loan. At 4% over 30 years, S$5,920 a month supports a loan of about S$1,240,000. Each S$1,000 of monthly repayment supports about S$209,000.

Scenario	Monthly room for home loan	Maximum loan at 4%, 30 years
As above	S$5,920	about S$1,240,000
Car loan paid off	S$6,820	about S$1,428,500
Car loan kept, S$100,000 pledged for 48 months	S$7,066	about S$1,480,000

Clearing the car loan adds about S$188,500 to what they can borrow. Separately, the loan-to-value cap still applies: on a first housing loan, a bank lends at most 75% of the price. Their TDSR limit of about S$1.24 million fits a home of about S$1.65 million at 75%, before stamp duty and fees. Run your own numbers in our mortgage calculator.

How to raise your TDSR limit

Your TDSR limit goes up when the debts fall or the recognised income rises. These are the levers that work.

Pay off or cancel other debts. Car loans and personal loans come straight off your 55%. Revolving credit counts too: if there is no recent statement, the bank applies the loan’s interest rate to the whole credit limit.
Add a co-borrower. A second income on the loan raises the total. Their debts count as well, so check those first.
Pledge savings. Singapore dollar cash pledged with the bank for at least 4 years counts in full, spread over 48 months. S$100,000 pledged adds about S$2,083 a month of income. The same amount unpledged faces a 70% haircut and adds only S$625.
Show fixed income. Basic salary counts in full. If more of your pay is commission or bonus, the 30% haircut costs you room.
Take a longer tenure, carefully. Up to 30 years for HDB flats and 35 years for private homes. A tenure over 30 years (25 for an HDB flat), or one that runs past age 65, drops the loan-to-value cap to 55%, so a lower instalment can come with a much bigger down payment.

If you are upgrading from an HDB flat, try the condo affordability quiz. It applies TDSR, the loan-to-value cap and your cash and CPF together, and shows which of the three limits you hit first.

When TDSR is checked again

TDSR applies to new loans, so it is checked when you buy and again for some refinancing. MAS says loans above 55% should be granted only in exceptional cases, with a debt reduction plan the borrower commits to. Our refinancing guide covers what to expect if your income has dropped since you bought.

This page is general information from MAS rules, checked on 14 October 2026. Each bank applies its own credit checks on top.

Common questions

What does TDSR stand for?

Total Debt Servicing Ratio. It is the share of your gross monthly income that goes to repaying all your debts, including the property loan you are applying for. MAS caps it at 55% for property loans from banks and other financial institutions.

Why does the bank use 4% when my rate is lower?

MAS requires banks to work out the new home loan's instalment at a medium-term rate: the higher of 4% a year or the bank's own thereafter rate for residential property. The floor has been 4% since 30 September 2022, so you can still afford the loan if rates rise.

Does TDSR apply to HDB loans?

No. TDSR is a MAS rule for loans from banks and financial institutions. HDB assesses its own loans using the 30% income cap and a 3% interest rate floor. If you buy an HDB flat with a bank loan, both TDSR and the 30% MSR apply.

What is the difference between TDSR and MSR?

TDSR covers all debts and is capped at 55% of income for any property loan. MSR covers only property loans and is capped at 30%, but it applies only to HDB flats and to ECs still within their minimum occupation period. For those, MSR is usually the tighter limit.

Can I get a loan above 55% TDSR?

MAS says loans above 55% should be granted only in exceptional cases. The bank has to document the reasons, put the borrower on a debt reduction plan and report the case to MAS. Do not plan a purchase around getting an exception.

Does my bonus count for TDSR?

Yes, but only part of it. Bonus, commission, allowances and rental income are variable income, so the bank averages them over the last 12 months and counts at most 70%.

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Sources

Facts on this page were checked against these sources on 14 October 2026.