The Three Rules That Determine Your Maximum Home Loan
In Singapore, three MAS-regulated frameworks control how much you can borrow:
- LTV (Loan-to-Value) — caps the loan as a percentage of the property price
- TDSR (Total Debt Servicing Ratio) — limits total monthly debt to 55% of gross income
- MSR (Mortgage Servicing Ratio) — for HDB flats only, limits HDB/EC loan repayment to 30% of income
Your maximum loan is whichever of these gives the lowest figure. You must satisfy all applicable rules simultaneously.
Use our affordability calculator to instantly see your maximum loan, or try the TDSR calculator to check if you pass the 55% test.
Rule 1: LTV Limits — How Much the Bank Will Lend
LTV determines the maximum loan as a percentage of the property's purchase price or valuation (whichever is lower).
For Private Property (Bank Loan)
| Situation | Max LTV | Min Downpayment |
|---|---|---|
| 1st property, no outstanding home loans | 75% | 25% |
| 2nd property (1st loan outstanding) | 45% | 55% |
| 3rd property or more | 35% | 65% |
| Loan extends past age 65 or tenure > 30 years | 55% | 45% |
For HDB Flat (HDB Loan)
| Situation | Max LTV |
|---|---|
| HDB concessionary loan (eligible applicants) | 80% |
| Bank loan for HDB flat | 75% |
The HDB loan's 80% LTV is a significant advantage — your downpayment can be entirely from CPF with zero cash required.
Rule 2: TDSR — The 55% Income Limit
Your total monthly debt repayments (all loans combined) must not exceed 55% of your gross monthly income.
TDSR Formula
``` TDSR = Total Monthly Debt Obligations ÷ Gross Monthly Income Must be ≤ 55% ```
Monthly Debt Obligations include: - The new home loan you are applying for - Car loan repayments - Personal loan repayments - 5% of outstanding credit card balances per month - Any other loan repayments
Rule 3: MSR — For HDB Flats Only
If you are buying an HDB flat (BTO or resale) or an Executive Condominium from a developer, your monthly repayment on the property loan alone must not exceed 30% of gross monthly income.
MSR is binding for most HDB buyers since 30% is much more restrictive than the 55% TDSR limit.
How Much Can You Borrow? Worked Examples
Example 1: Single Earning S$5,000/month — Buying HDB Flat
- Max monthly HDB repayment (30% MSR): S$1,500
- Using HDB loan at 2.6% p.a. for 25 years
- Max HDB loan: ~S$318,000
- With 80% LTV, maximum flat price: S$318,000 ÷ 0.80 = ~S$397,500
- Downpayment needed (20%): S$79,500 (can come entirely from CPF OA)
Example 2: Couple Earning S$8,000/month Combined — Buying HDB Flat
- Max monthly HDB repayment (30% MSR): S$2,400
- Using HDB loan at 2.6% p.a. for 25 years
- Max HDB loan: ~S$509,000
- With 80% LTV, maximum flat price: S$509,000 ÷ 0.80 = ~S$636,000
- Existing debt (car loan S$800/month): reduces TDSR room
- TDSR check: (S$2,400 + S$800) ÷ S$8,000 = 40% ✅ passes 55% TDSR
Example 3: Couple Earning S$12,000/month — Buying Private Condo
- No existing debts
- Max monthly repayment (55% TDSR): S$6,600
- Using bank loan at 3.10% p.a. for 30 years
- Max bank loan: ~S$1,545,000
- With 75% LTV, maximum condo price: S$1,545,000 ÷ 0.75 = ~S$2,060,000
- Cash downpayment needed (5%): S$103,000
- CPF/cash (20%): S$412,000
| Income | Property Type | Max Loan | Max Property Price |
|---|---|---|---|
| S$5,000/month | HDB (HDB loan) | ~S$318,000 | ~S$398,000 |
| S$8,000/month | HDB (HDB loan) | ~S$509,000 | ~S$636,000 |
| S$8,000/month | Private (bank loan) | ~S$630,000 | ~S$840,000 |
| S$12,000/month | Private (bank loan) | ~S$945,000 | ~S$1,260,000 |
| S$12,000/month | Private (bank, 30yr) | ~S$1,125,000 | ~S$1,500,000 |
*Assumes no existing debts. Add existing debts to reduce the available TDSR room.*
How Existing Debts Reduce Your Maximum Loan
Every existing loan reduces the TDSR room available for your home loan.
For a couple earning S$10,000/month combined:
| Existing Monthly Debt | TDSR Room Left | Max Home Loan Repayment | Max Loan (3.10%, 25yr) |
|---|---|---|---|
| S$0 | 55% = S$5,500 | S$5,500 | ~S$1,165,000 |
| S$800 (car loan) | S$4,700 | S$4,700 | ~S$996,000 |
| S$1,500 (car + personal) | S$4,000 | S$4,000 | ~S$847,000 |
| S$2,000 | S$3,500 | S$3,500 | ~S$741,000 |
Clear debts before applying for a home loan to maximise your borrowing power. Use our TDSR calculator to see the exact impact.
The Stress Test — Why Banks Use a Higher Rate
When assessing your TDSR, banks apply a stress test at 4.0% p.a. (the higher of 3.5% or the prevailing rate +1%), even if actual rates are lower. This ensures you can afford repayments if rates rise.
Example: - Actual rate: 3.10% p.a. - Stress test rate: 4.00% p.a. - At 4.00%, a S$1,000,000 loan over 25 years costs S$5,278/month - At 3.10%, the same loan costs S$4,786/month - Banks use the higher S$5,278 figure in your TDSR calculation
This effectively reduces your maximum approved loan by approximately 10%.
Tips to Borrow More
1. Add a Co-Borrower A spouse or family member as co-borrower adds their income to the TDSR calculation. A combined income of S$10,000 qualifies for significantly more than two separate S$5,000 incomes.
2. Pay Down Existing Debts First Clearing your car loan or personal loan before applying directly expands your TDSR room. S$800/month in cleared car loan debt adds roughly S$170,000 in home loan borrowing capacity.
3. Extend the Loan Tenure A 30-year tenure has lower monthly payments than a 25-year tenure, allowing you to borrow more within the TDSR limit. However, maximum tenure is 35 years for private property (or the age of the youngest borrower must be under 65 at loan end).
4. Clear Credit Card Balances A S$10,000 credit card balance counts as S$500/month in TDSR. Pay it off before applying to remove this burden.
5. Choose an HDB Flat Instead of Private Property HDB loans allow 80% LTV vs 75% for private. The lower interest rate (2.6%) also means lower monthly repayments for the same loan, allowing you to borrow more within the MSR/TDSR limits.
MSR for Executive Condominiums (ECs)
If you are buying an Executive Condominium directly from a developer, MSR (30%) also applies — the same as HDB flats. Once the EC is privatised after 10 years, it becomes a regular private property and MSR no longer applies for future buyers.
Frequently Asked Questions
Does rental income help me borrow more?
Yes, but only 70% of rental income is counted in the TDSR calculation (Singapore or overseas rental). You will need a tenancy agreement as proof. Self-employed income and variable income are also subject to a 30% haircut.
Can I use CPF to repay my home loan?
Yes. CPF Ordinary Account funds can be used to repay both HDB and private property home loans (subject to withdrawal limits and accrued interest rules). CPF usage does not affect TDSR calculations directly, but it affects your retirement savings.
What is the maximum home loan tenure in Singapore?
For private property: 35 years. For HDB flats with HDB loan: 25 years. For HDB flats with bank loan: 30 years. The loan must also not extend past the borrower's 65th birthday in most cases.
If I fail TDSR, can I still buy property?
You can buy property in cash without a loan — TDSR only applies to property loans. Alternatively, buy a lower-priced property with a smaller loan that fits within your TDSR limit. Use our affordability calculator to find the right price range for your income.