What is TDSR in Singapore?
The Total Debt Servicing Ratio (TDSR) is a MAS (Monetary Authority of Singapore) framework that limits how much of your income can go towards debt repayments. Introduced in 2013, it applies to all property loans in Singapore.
The rule: Your total monthly debt repayments cannot exceed 55% of your gross monthly income.
Calculate your TDSR instantly with our free TDSR calculator Singapore.
TDSR Formula
``` TDSR = Total Monthly Debt Obligations ÷ Gross Monthly Income × 100%
TDSR must be ≤ 55% ```
What Counts as Debt in TDSR Calculation?
| Debt Type | How It's Counted |
|---|---|
| Home loan (applying for) | Full monthly payment |
| Car loan | Full monthly payment |
| Personal loan | Full monthly payment |
| Credit card outstanding | 5% of outstanding balance/month |
| Student loan | Full monthly payment |
| Renovation loan | Full monthly payment |
| Guarantor obligations | 100% counted unless co-borrower pays |
What is NOT Counted: - Utilities and phone bills - Insurance premiums - CPF contributions (TDSR uses gross income before CPF) - Rental income (counted at 70% if documented)
TDSR Calculation — Worked Example
Profile: Married couple, combined gross income SGD 12,000/month
Existing debts: - Car loan: SGD 800/month - Credit card outstanding: SGD 8,000 × 5% = SGD 400/month - Personal loan: SGD 300/month
Step 1: Total existing debt = SGD 800 + SGD 400 + SGD 300 = SGD 1,500/month
Step 2: Maximum total debt at 55% TDSR = SGD 12,000 × 55% = SGD 6,600/month
Step 3: Maximum new home loan repayment = SGD 6,600 − SGD 1,500 = SGD 5,100/month
Step 4: Using our home loan calculator at 3.10% for 25 years, SGD 5,100/month supports a loan of approximately SGD 1,040,000.
TDSR for Variable Income Earners
If your income is variable (commission, bonus, freelance), MAS requires banks to apply a haircut:
| Income Type | How Banks Count It |
|---|---|
| Fixed salary | 100% |
| Regular bonus (12-month history) | 70% |
| Commission income | 70% |
| Rental income | 70% (with tenancy agreement) |
| Freelance/self-employed | 70% of verifiable income |
| Overseas income | 70% |
Example: If you earn SGD 5,000 fixed + SGD 3,000 commission: - Qualifying income = SGD 5,000 + (SGD 3,000 × 70%) = SGD 7,100/month
TDSR vs MSR — What's the Difference?
| TDSR | MSR | |
|---|---|---|
| Full name | Total Debt Servicing Ratio | Mortgage Servicing Ratio |
| Applies to | All property loans | HDB flat loans only |
| Limit | 55% of income | 30% of income |
| What's counted | ALL debt obligations | Only the HDB mortgage |
For HDB flat buyers: You must satisfy BOTH TDSR (55%) AND MSR (30%).
See our detailed guide on MSR vs TDSR Singapore for a complete comparison.
How TDSR Affects Your Maximum Loan Amount
For a single person earning SGD 6,000/month with no existing debts:
| Loan Tenure | Max Monthly Payment (55%) | Max Loan at 3.10% |
|---|---|---|
| 20 years | SGD 3,300 | SGD 592,000 |
| 25 years | SGD 3,300 | SGD 703,000 |
| 30 years | SGD 3,300 | SGD 793,000 |
Use our affordability calculator to model your specific situation.
TDSR Stress Test
Banks apply a stress test rate when calculating TDSR — typically adding 3% to the prevailing rate. This ensures you can still afford repayments if rates rise.
| Prevailing Rate | Stress Test Rate | Impact |
|---|---|---|
| 3.10% | 6.10% | Reduces your maximum loan by ~20% |
| 4.00% | 7.00% | Further reduces maximum loan |
Legal Ways to Improve Your TDSR
1. Pay Down Existing Debts Paying off your car loan, personal loan, or credit card before applying for a home loan directly improves your TDSR.
2. Clear Credit Card Balances SGD 10,000 credit card outstanding counts as SGD 500/month in TDSR. Clearing it immediately removes SGD 500 from your debt obligations.
3. Apply Jointly with a Spouse Combining incomes significantly increases your TDSR room. If you earn SGD 6,000 and your spouse earns SGD 5,000, your combined qualifying income is SGD 11,000 — not subject to the variable income haircut if both have fixed salaries.
4. Remove Guarantor Status If you are a guarantor on someone else's loan, 100% of that loan counts in your TDSR. Getting removed as guarantor (if the primary borrower can stand alone) improves your position.
5. Reduce Loan Tenure to Lower TDSR Commitment This seems counterintuitive — a longer tenure gives lower monthly payments and better TDSR. But stress testing at 3% above rate means a longer tenure helps your TDSR calculation.
TDSR Exemptions
The TDSR framework does not apply to: - Refinancing of owner-occupied residential properties where the loan amount does not increase - Bridging loans (short-term, up to 6 months) - Loans for industrial and commercial properties
Frequently Asked Questions
Does TDSR apply to HDB flats?
Yes — both TDSR (55%) and MSR (30%) apply to HDB flat purchases. The MSR is the binding constraint for most HDB buyers since it is lower.
Is TDSR checked every time I refinance?
For owner-occupied properties, TDSR is waived for refinancing unless the loan amount increases. This allows more flexibility when repricing or refinancing your home loan.
Can my CPF contributions be used to improve TDSR?
No — TDSR is based on gross income before CPF deductions. CPF monthly contributions are not considered debt obligations in the TDSR calculation.
What happens if I fail the TDSR test?
The bank cannot approve your loan. Options include: reducing the loan amount, extending the tenure, paying down existing debts before applying, or applying jointly with a higher-income co-borrower.
Check Your TDSR Now
Use our TDSR calculator Singapore to enter your income and all existing debt obligations. See instantly whether you pass the MAS 55% test and how much home loan you can qualify for.