The Rules, Plainly

TDSR 55% and MSR 30% — how they really work

TDSR caps all your monthly debt obligations — mortgage, car loan, credit card minimums, personal loans — at 55% of gross monthly income. Every bank loan for property in Singapore goes through it. MSR is stricter and applies only to HDB flats and ECs: the mortgage payment alone may not exceed 30% of gross income. For HDB and EC purchases, both tests run at once and the tighter one wins.

Two practical consequences. First, existing debts hurt twice: S$1,000/month of car loan reduces your mortgage headroom by the full S$1,000 under TDSR. Second, banks don't use today's ~1.4% package rate to assess you — they use a medium-term floor around 4%, so real approvals are always lower than brochure math suggests.

Buying an EC? Remember MSR counts only this mortgage, but the bank will still check TDSR across everything you owe. And the first 5% of the price must be cash. Run your stamp duties next with the ABSD & BSD calculator, and estimate grants with the CPF grant calculator.

Frequently asked questions

55% of gross monthly income across all debt obligations, unchanged since December 2021. It applies to every property loan from MAS-regulated banks — HDB, EC and private property alike.

No. The 30% Mortgage Servicing Ratio applies only to HDB flats and executive condos. Private condo and landed purchases are tested against TDSR (55%) only, though banks apply their own internal affordability checks too.

The higher of about 4% p.a. or your contracted rate — the MAS medium-term rate floor. Even though actual packages were around 1.4–1.5% in mid-2026, your approval is tested at the stress rate, and variable income is usually discounted ~30%.

With no other debts, MSR caps the payment at S$3,600/month (30% of S$12,000). At a 4% assessment rate over 25 years, that supports roughly S$680,000 of loan — about a S$907,000 property at 75% LTV. Use the calculator above with your real numbers.