Cap on monthly mortgage instalments at 30% of gross monthly income. Applies only to HDB flats and Executive Condominiums (during MOP).
The Mortgage Servicing Ratio caps your monthly mortgage instalment at 30% of gross monthly income. It applies only to HDB flats and Executive Condominiums (during the 5-year Minimum Occupation Period).
MSR is a separate cap from TDSR — your loan must satisfy both. For HDB / EC purchases, MSR usually bites first because 30% is tighter than the 55% TDSR ceiling.
Combined household gross income: S$8,000. MSR ceiling: S$2,400 / month for housing.
At HDB concessionary 2.6% over 25 years, S$2,400 / month supports a loan of ~S$525,000.
Add the 25% downpayment, and the maximum HDB flat price this household can buy is ~S$700,000 — before factoring in the income ceiling and Enhanced CPF Housing Grant.
MSR was introduced in 2013 to keep HDB and EC purchases within reach of household budgets. The 30% threshold is roughly the historical average that families have safely allocated to housing without crowding out other essentials.
MSR also discourages buyers from stretching to the most expensive flat their income allows. The intent is policy-driven affordability — not maximum borrowing capacity.
30% of gross monthly income. The Mortgage Servicing Ratio applies only to HDB flats and Executive Condominiums (during the 5-year MOP). For private property, only TDSR applies (55%).
Combined gross monthly income across all named applicants. Banks haircut variable income (commissions, bonuses, rental) by 30% before applying the 30% cap.
No — MSR is calculated on the monthly instalment regardless of how much you put down. The only ways to satisfy MSR are higher income, longer tenure (to reduce monthly payment), or a cheaper property.