What is TDSR in Singapore?
The Total Debt Servicing Ratio (TDSR) is a MAS-mandated cap that limits your total monthly debt repayments to 55% of your gross monthly income. It was introduced in June 2013 to ensure Singapore borrowers do not over-leverage and applies to all property loans from financial institutions.
TDSR affects every home loan, investment property loan, and refinancing application. Understanding it is essential before you apply.
Use our TDSR calculator Singapore to instantly check your TDSR and see how much you can borrow.
The TDSR Formula
TDSR = (Total Monthly Debt Obligations / Gross Monthly Income) x 100
Rule: TDSR must be 55% or below to qualify for a property loan.
What Counts as Monthly Debt Obligations?
ALL of the following count toward your TDSR:
| Debt Type | How It's Counted |
|---|---|
| Home loan (new application) | Monthly repayment at medium-term interest rate (min. 3.5% stress test) |
| Car loan | Actual monthly repayment |
| Personal loan / renovation loan | Actual monthly repayment |
| Credit card outstanding balance | 5% of outstanding balance per month |
| Student loan | Actual monthly repayment |
| Hire purchase | Actual monthly repayment |
| Guarantor obligations | Counted proportionally |
What Counts as Gross Monthly Income?
| Income Source | How It's Counted |
|---|---|
| Fixed monthly salary | 100% |
| Variable income (commission, bonus) | 70% of monthly average over 12 months |
| Rental income | 70% of rental income |
| Director's fees | 70% of monthly average |
| CPF contributions (employer + employee) | Included in gross salary |
| Overseas income | 70% |
Worked TDSR Example
Scenario: John earns S$8,000/month fixed salary. He wants to buy a condo at S$1.2M.
Existing debts: - Car loan: S$900/month - Credit card outstanding: S$5,000 (5% = S$250/month) - Personal loan: S$400/month
Total existing monthly obligations: S$900 + S$250 + S$400 = S$1,550/month
Available TDSR capacity: - Maximum total debt = 55% x S$8,000 = S$4,400/month - Remaining capacity = S$4,400 - S$1,550 = S$2,850/month for new home loan
Maximum home loan at 3.5% stress test, 30-year tenure: - S$2,850/month supports approximately S$626,000 in loan
Given a S$1.2M condo with 75% LTV, John would need a S$900,000 loan — more than his S$626,000 TDSR capacity. He cannot qualify at this property price with his current debts.
The TDSR Stress Test — 3.5% Floor Rate
When MAS calculates your TDSR for a home loan application, the bank must use a minimum floor rate of 3.5% p.a. for the stress test — regardless of the actual interest rate you are offered.
This means even if you are applying for a loan at 2.90% fixed, the bank tests your ability to repay at 3.5%. This protects against future rate rises.
Effect of stress test: - Loan at 2.90%: S$2,850/month would support ~S$660,000 loan - Stress test at 3.50%: S$2,850/month supports only ~S$626,000 loan - Difference: ~S$34,000 less borrowing power due to stress test
TDSR Calculation — Step by Step
Step 1: Determine your gross monthly income - Salary: S$8,000 - Variable bonus (annual S$12,000 / 12 x 70%): S$700 - Total income: S$8,700
Step 2: List all monthly debt obligations - Car loan: S$900 - Credit card 5% x S$5,000: S$250 - Personal loan: S$400 - Proposed home loan (stress test 3.5%, 30yr): S$2,243 (on S$500,000)
Step 3: Calculate TDSR - Total obligations: S$900 + S$250 + S$400 + S$2,243 = S$3,793 - TDSR = S$3,793 / S$8,700 = 43.6% — within the 55% limit
TDSR Thresholds and What They Mean
| Your TDSR | What It Means |
|---|---|
| Below 30% | Excellent — large borrowing capacity |
| 30%–45% | Good — comfortable within limits |
| 45%–55% | Borderline — limited remaining capacity |
| Above 55% | Cannot qualify for property loan |
How to Improve Your TDSR
If your TDSR is too high to qualify for the loan you need, here are the proven strategies:
1. Clear Small Debts First
Pay off personal loans, renovation loans and clear credit card balances before applying. Eliminating S$400/month in personal loan repayments frees up S$400 of TDSR capacity — enough to support an additional ~S$88,000 in home loan (at 3.5%, 30yr).
2. Reduce Your Credit Card Outstanding Balance
Credit card outstanding balances count at 5%/month — a S$10,000 outstanding counts as S$500/month of debt. Pay these down before applying.
3. Clear Your Car Loan Early
A S$1,200/month car loan significantly reduces TDSR capacity. If you are close to the end of your tenure, consider settling early. Use our car loan calculator to check the settlement amount.
4. Include All Income Sources
Ensure your bank counts all eligible income: - Declare all variable income (commission, bonuses) with 12 months' records - Include rental income if applicable (with tenancy agreement) - Include CPF contributions — your gross salary includes both employee and employer CPF
5. Add a Co-Borrower
Adding a spouse or family member as a co-borrower combines both incomes (and debts). If your partner has low debts and a good salary, this can significantly increase your TDSR capacity.
6. Extend Your Loan Tenure
A longer tenure means lower monthly repayment on the same loan, which reduces TDSR. Going from 25 years to 30 years on a S$700,000 loan at 3.5% reduces the monthly payment from S$3,499 to S$3,142 — freeing up S$357 of TDSR room.
TDSR for Investment Properties
For investment (non-owner-occupied) properties, TDSR applies at the full 55% threshold. The rules are the same but banks are generally stricter about rental income verification.
TDSR vs MSR — What Is the Difference?
| TDSR | MSR | |
|---|---|---|
| Full Name | Total Debt Servicing Ratio | Mortgage Servicing Ratio |
| Cap | 55% of gross income | 30% of gross income |
| Applies To | All property loans | HDB flat and EC loans only |
| Covers | All monthly debt obligations | Only the property loan being applied for |
Both TDSR and MSR apply simultaneously for HDB and EC loans. The MSR's 30% cap is usually the binding constraint for HDB purchases.
MSR Example
On S$8,000 income: - MSR limit: 30% x S$8,000 = S$2,400/month for HDB loan repayment - This means maximum HDB loan of approximately S$527,000 at 3.5%, 25-year tenure
Frequently Asked Questions
Does CPF count as income for TDSR?
Yes. Your gross monthly income for TDSR purposes includes both employee and employer CPF contributions. If your take-home pay is S$6,000 but your gross salary (before CPF deductions) is S$8,000, the bank uses S$8,000 for TDSR calculation.
Do credit card limits affect TDSR even if I pay in full?
No. Only the outstanding balance on your credit cards counts toward TDSR (at 5% per month). If you pay your credit card in full each month and have zero outstanding, it does not impact your TDSR.
Can I use rental income to boost my TDSR?
Yes. Rental income from an existing investment property can be included at 70%. You will need a signed tenancy agreement and bank statements showing rental receipts.
What happens if my TDSR is exactly 55%?
You are at the maximum limit. Banks can approve you at exactly 55%, but there is no room for additional obligations. If your credit card balance fluctuates, you may fall in and out of eligibility.
Does the TDSR apply to HDB loans?
The HDB Concessionary Loan does not fall under MAS TDSR rules in the same way — HDB applies its own assessment based on MSR and HDB eligibility criteria. However, any simultaneous bank loans you hold are still assessed.
Check your TDSR now with our TDSR calculator — input your income, existing debts and proposed loan to see exactly where you stand.
About this guide
Published by LoanCalculatorSingapore.com on . Rates and regulatory limits quoted here reflect publicly available information at the time of writing and change frequently — confirm current figures with the lender or the relevant Singapore authority before you act on them.
Official references: MAS, HDB, CPF Board, IRAS.
We are not a licensed financial adviser. This guide is general information, not personalised financial advice. See our full disclaimer.