What is TDSR in Singapore?
The Total Debt Servicing Ratio (TDSR) is a framework introduced by the Monetary Authority of Singapore (MAS) in 2013 to promote responsible borrowing. It limits your total monthly debt repayments to 55% of your gross monthly income.
How to Calculate Your TDSR
TDSR is calculated as:
TDSR = Total Monthly Debt Obligations ÷ Gross Monthly Income × 100%
Your total monthly debt obligations include: home loan repayment, car loan, personal loan, credit card minimum payments (counted at 5% of outstanding balance), student loan, and any other credit facilities.
TDSR Calculation Example
Suppose you earn S$8,000/month gross and have the following debts:
- Car loan: S$800/month - Personal loan: S$300/month - Credit card outstanding S$5,000 (counted as S$250/month at 5%)
Total existing debt: S$1,350/month
Maximum total debt at 55% TDSR: S$8,000 × 55% = S$4,400/month
Maximum new home loan repayment allowed: S$4,400 − S$1,350 = S$3,050/month
Variable Income and TDSR
For borrowers with variable income (commission, rental, freelance), MAS guidelines typically allow banks to use 70% of variable income in TDSR calculations. This reduces your effective qualifying income and thus your maximum loan.
MSR vs TDSR for HDB Flats
For HDB flats specifically, there is an additional Mortgage Servicing Ratio (MSR) limit of 30% of gross income that applies only to the HDB loan repayment itself. The MSR is more restrictive than TDSR for HDB purchases.
How to Improve Your TDSR
To qualify for a larger home loan, consider: paying down existing debts before applying, clearing your credit card balances, removing yourself as guarantor on other loans, or applying jointly with a spouse to combine income.
Use Our Loan Calculator
Estimate your loan repayments and check against your TDSR with our free home loan calculator Singapore.