The total debt servicing ratio in Singapore is the rule that decides how big a property loan you can actually get. Set by the Monetary Authority of Singapore, TDSR says your total monthly debt repayments cannot exceed 55% of your gross monthly income, counting the new loan you are applying for. The catch is the maths underneath: banks stress-test your mortgage at a 4% interest floor, shave 30% off any variable income, and add up every car loan, credit card and student loan you carry. Two people on the same salary can get very different loan offers because of it. This guide walks through the 2026 numbers, the haircuts that quietly shrink your limit, and the levers that move your TDSR back into range.
TDSR stands for total debt servicing ratio. It is the share of your gross monthly income that goes to servicing all your debts, including the property loan you want to take. MAS introduced it in June 2013 to stop households from borrowing more than they could repay, and tightened the cap from 60% to 55% on 16 December 2021. That 55% figure is the number every bank works back from.
The rule applies whenever you take or refinance a property loan from a financial institution, whether it is an HDB flat bought with a bank loan, an executive condominium or a private condo. It also bites when you take a loan secured against property you already own. If your computed TDSR comes out above 55%, the bank does not reject you outright. It reduces the loan quantum until the ratio fits, which usually means a bigger cash down payment or a smaller home.
TDSR sits alongside two other limits you should know: the loan-to-value cap covered in our LTV explainer, and the mortgage servicing ratio for HDB and EC buyers. The three work together, so passing one does not mean you pass the others.
The formula is plain: total monthly debt obligations divided by gross monthly income, times 100. The friction is in what each side actually contains.
On the debt side, the mortgage instalment is not calculated at the rate your bank is offering today. MAS requires banks to stress-test the repayment at a medium-term interest rate floor, set since 30 September 2022 at 4.0% per year for residential property and 5.0% for non-residential property, or the bank's own thereafter rate if that is higher. So even if you lock a 2.5% promotional rate, your TDSR is computed as though you pay 4%, which inflates the instalment and tightens your limit.
| Parameter | Value | Notes |
|---|---|---|
| TDSR limit | 55% of gross monthly income | Tightened from 60% on 16 Dec 2021 |
| Stress-test floor (residential) | 4.0% per year | Or bank thereafter rate if higher |
| Stress-test floor (non-residential) | 5.0% per year | Applies to commercial property loans |
| Variable income recognised | 70% (30% haircut) | Bonus, commission, freelance, rental |
| MSR limit (HDB and EC) | 30% of gross monthly income | Applies on top of TDSR |
Banks pull your credit bureau report and add up every recurring obligation. The income side gets discounted before the maths even starts, which is where most surprises happen.
Fixed salary is recognised in full. Anything variable takes a 30% haircut, so the bank counts only 70%. Someone earning a $5,000 base plus $5,000 commission is assessed on $5,000 + (70% x $5,000) = $8,500, not $10,000. Rental income and freelance income face the same 30% cut.
If you are cash-rich but income-light, MAS lets banks convert eligible financial assets into a notional income stream, amortised over 48 months. Pledge an asset such as an SGD fixed deposit for four years and it can count in full; leave it unpledged and a 30% haircut applies before the conversion. This is how some retirees and business owners pass TDSR despite a modest salary.
If you are buying an HDB flat or a new executive condo with a bank loan, you face a second cap: the mortgage servicing ratio. MSR limits your monthly home loan repayment to 30% of gross monthly income, and it ignores your other debts entirely. You must clear both MSR and TDSR; whichever is tighter sets your loan.
For a buyer with few other debts, MSR at 30% is usually the binding constraint. For someone carrying a car loan and credit card balances, TDSR at 55% can bite harder because it counts everything. Our MSR glossary entry and the HDB loan vs bank loan comparison show how the two interact, since an HDB concessionary loan is governed by HDB's own rules rather than the bank MSR.
| Feature | TDSR | MSR |
|---|---|---|
| Cap | 55% of gross income | 30% of gross income |
| Counts which debts | All debts plus new loan | Property loan only |
| Applies to | All property loans | HDB flats and ECs |
| Who must pass | Every bank borrower | HDB and EC buyers, on top of TDSR |
Take Wei Ling, a private condo buyer with $6,000 fixed salary and $2,000 monthly commission. Her recognised income is $6,000 + (70% x $2,000) = $7,400. At the 55% cap, her total debt headroom is $4,070 a month.
She already pays $700 on a car loan and $150 as the minimum on her credit cards, leaving $4,070 - $850 = $3,220 for the new mortgage instalment. Because the bank stress-tests at 4% over a 25-year tenure, that $3,220 supports roughly a $610,000 loan, not the larger figure her promotional 2.5% rate would suggest. Clear the car loan first and her mortgage headroom jumps to about $3,920, supporting closer to $740,000.
Run your own numbers with our mortgage calculator and sanity-check the down payment against the HDB loan calculator if you are buying a flat. The gap between your offered rate and the 4% floor is exactly why your in-principle approval can come in lower than you expected.
Before you commit, stress-test your own budget the way the bank does. If a 4% rate would strain you, the loan that just scrapes past TDSR may still be too big in practice. Our guide to HDB and private mortgages covers the full borrowing picture beyond the ratio itself.
The TDSR limit is 55% of your gross monthly income. Your total monthly debt repayments, including the new property loan, cannot exceed this share. MAS tightened it from 60% to 55% on 16 December 2021 to curb over-borrowing across all property loan types.
TDSR is a regulatory gate for property loans, not a formal approval rule for personal loans or credit cards. However, your existing personal loan and credit card repayments are counted as debt when you apply for a mortgage, so they directly reduce how much you can borrow for a home.
Banks must compute your TDSR using a medium-term interest rate floor of 4% per year for residential property, even if your promotional rate is lower. The higher stress rate inflates the assumed instalment, which shrinks the loan amount that fits within the 55% cap.
Yes. MAS exempts the refinancing of a loan on owner-occupied residential property from the 55% TDSR threshold. This lets homeowners switch to a cheaper rate without being blocked by the ratio, provided the property is the one they live in.
This is general financial information for Singapore, not personal financial advice. Figures change — verify current rates against the official sources above before acting. See our full disclaimer.