Check your Total Debt Servicing Ratio before applying for a property loan
Rates verified: June 2026
Banks stress test your loan at 4% even if the offered rate is lower. HDB loans are stress tested at 2.6%.
The Total Debt Servicing Ratio (TDSR) is a MAS-mandated rule that limits your total monthly debt repayments to 55% of your gross monthly income. It applies to all property loans in Singapore and is checked by every bank and licensed moneylender before loan approval. If your debts exceed this threshold, your loan application will be declined regardless of your income level.
All debt obligations count toward TDSR: home loans, car loans, personal loans, student loans, and credit cards. For credit card debt, banks typically use 5% of the outstanding balance as a proxy for the monthly obligation, even if you make only minimum payments.
The Mortgage Servicing Ratio (MSR) is a stricter 30% limit that applies specifically to loans for HDB flat purchases, covering both HDB concessionary loans and bank loans used to buy an HDB flat. Only the new property mortgage counts toward MSR, not other debts. If you are buying a private property, MSR does not apply and only TDSR is checked.
MAS requires banks to test loan affordability at 4% per annum, regardless of the actual loan rate offered. This means your monthly repayment is calculated at 4% interest even if the bank is offering 3%. HDB concessionary loans are stress tested at their actual rate of 2.6%. This ensures borrowers can still service the loan if interest rates rise.
| Rule | Limit | Applies To | Debts Counted |
|---|---|---|---|
| TDSR | 55% | All property loans (bank) | All monthly debt obligations |
| MSR | 30% | HDB flat purchases only | New property mortgage only |
TDSR does not apply to HDB concessionary loans. However, MSR (30%) still applies to determine how much HDB will lend you.
Yes. If you apply for a joint loan, both incomes are combined. Enter the combined gross income in the salary field above to calculate joint TDSR capacity.
Your gross monthly salary, rental income (at 70%), commission income (at 70% of the preceding 12-month average), and dividends are all includable depending on the lender's assessment. If you have variable income, enter 70% of your average monthly income.
The bank will not approve your loan. You will need to either reduce existing debts, borrow less, extend the loan tenure to reduce monthly payments, or add a co-borrower to increase total income.
⚠️ Financial Disclaimer: Calculations on this site are for informational purposes only and do not constitute financial advice. Results are estimates based on published rates and may not reflect your individual circumstances. Always verify with official sources and consult a qualified financial advisor before making financial decisions.