TDSR and MSR Explained: Can You Afford That Property?
Last reviewed: June 2026
Quick Answer
TDSR (Total Debt Servicing Ratio) caps your total monthly debt repayments at 55% of gross income in Singapore, while MSR (Mortgage Servicing Ratio) limits home loan repayments to 30% for HDB flats and executive condominiums. Both rules govern how much banks can lend you. Thresholds are as of 2026 and subject to change.
You can afford a Singapore property only if your loan passes two MAS tests: total monthly debt within 55% of gross income under TDSR, and, for HDB flats, the mortgage within 30% under MSR. Before any Singapore bank approves a property loan, your application must pass two MAS-mandated tests: TDSR and, for HDB flat purchases, MSR. Failing either means rejection regardless of your income or credit score. Understanding these rules before you make an offer can save you from a very expensive mistake.
What Is TDSR?
The Total Debt Servicing Ratio (TDSR) limits your total monthly debt repayments to 55% of your gross monthly income. It was introduced by MAS in 2013 and applies to all property loans in Singapore.
Every debt obligation counts: your new mortgage, existing home loans, car loans, personal loans, student loans, and credit card balances. For credit cards, banks use 5% of the outstanding balance as the proxy monthly obligation, even if you pay only the minimum.
TDSR = Total monthly debt repayments ÷ Gross monthly income
Must be 55% or below.
What Is MSR?
The Mortgage Servicing Ratio (MSR) is an additional, stricter rule that applies only to HDB flat purchases, covering both HDB concessionary loans and bank loans used to buy an HDB flat. MSR limits your monthly mortgage repayment to 30% of your gross monthly income.
Unlike TDSR, only the new property mortgage is counted toward MSR. Your car loan and credit cards do not affect your MSR. If you are buying a private property or Executive Condominium after the MOP, only TDSR applies.
MSR = New mortgage repayment ÷ Gross monthly income
Must be 30% or below (HDB purchases only).
What Counts as Income?
Your gross monthly salary is the primary figure. Banks may also include:
- Rental income at 70% of monthly rental
- Commission and variable income at 70% of the preceding 12-month average
- Dividends and other recurring income (varies by lender)
CPF contributions from your employer do not count as income for TDSR purposes. Use your gross salary before any deductions.
The Stress Test: Why Your Repayment Is Calculated at 4%
MAS requires all banks to stress-test property loans at a minimum interest rate of 4% per annum, regardless of the actual rate being offered. This means your monthly repayment for TDSR purposes is calculated at 4%, not the promotional rate of 3% or lower.
HDB concessionary loans are exempt from this stress test and use their actual rate of 2.6% per annum. This makes HDB loans more accessible than bank loans for buyers close to the TDSR or MSR limit.
Worked Example: Passing and Failing the Tests
Income: $7,000/month gross
Purchase: HDB flat, loan $450,000, 25 years at 4% stress test
Monthly mortgage (at 4%): ~$2,371
Car loan: $700/month
Credit card balance $8,000 × 5% = $400/month
TDSR: ($2,371 + $700 + $400) ÷ $7,000 = 49.6% ✓ passes 55%
MSR: $2,371 ÷ $7,000 = 33.9% ✗ fails 30%
Last reviewed: June 2026
In this example the buyer passes TDSR but fails MSR. To pass MSR they would need to either reduce the loan amount, extend the tenure, or increase their income. Clearing the $8,000 credit card balance would help TDSR but not MSR.
TDSR and MSR only account for your loan repayments. Budget separately for the stamp duty payable when buying property, since our Singapore stamp duty 2026 guide shows this upfront cost is due in cash or CPF regardless of how comfortably you pass either test.
How to Improve Your TDSR or MSR
- Pay off credit card balances and personal loans before applying (reduces monthly obligations)
- Clear or reduce car loan
- Apply jointly with a spouse or co-borrower to combine incomes
- Extend loan tenure to reduce monthly payment (note: increases total interest paid)
- Choose a lower loan amount or property price
Check Your TDSR and MSR Now
Enter your income, existing debts, and loan details to check whether you pass TDSR and MSR before you make an offer.
Singapore TDSR and MSR Calculator →
Frequently Asked Questions
Does TDSR apply to HDB concessionary loans?
No. HDB concessionary loans are exempt from TDSR. However, MSR (30%) still applies to determine the maximum loan from HDB.
Can I include rental income in my TDSR calculation?
Yes, rental income is counted at 70% of the monthly rental amount. Banks will require tenancy agreements as documentation.
What happens if I fail TDSR or MSR?
The bank or HDB will not approve the loan. You will need to reduce existing debts, lower the loan amount, or add a co-borrower.
Do outstanding credit cards affect TDSR if I pay in full every month?
Yes. Banks assess outstanding card balances at 5% per month regardless of your repayment habits. Clearing balances before applying is strongly recommended.
Last reviewed: June 2026
Related: Home Loan Calculator | Stamp Duty Calculator | Personal Loans in Singapore 2026