What Is TDSR in Singapore? A Simple Guide for Property Buyers in 2026
You’ve found a property you like. Your savings look healthy, and the monthly instalment seems manageable.
Then the bank assesses your loan — and the amount you can borrow is lower than expected.
What happened?
One possible reason is TDSR, or Total Debt Servicing Ratio.
In Singapore, it helps determine how much you can borrow for a property by looking at your existing debts alongside your proposed mortgage.
As of 2026, the TDSR threshold is 55% of gross monthly income for applicable property loans. But what does that actually mean for your home-buying budget?
What is TDSR and how does it work?
TDSR is a borrowing limit set by the Monetary Authority of Singapore (MAS). It measures how much of your gross monthly income goes towards servicing your monthly debt obligations.
These can include your proposed home loan, existing property loans, car loans, personal loans and relevant credit commitments.
The formula is straightforward:
TDSR = Total monthly debt obligations ÷ Gross monthly income × 100%
For applicable property loans, your total monthly debt obligations generally cannot exceed 55% of your assessed gross monthly income. Banks also apply prescribed assessment methods, including a mortgage interest-rate stress test.
How is TDSR calculated? A simple example
Imagine you earn $10,000 a month before tax.
Under the 55% threshold, your total monthly debt obligations would be capped at $5,500 for TDSR assessment.
Now, suppose you already pay:
$1,000 monthly for a car loan
$200 towards other assessed debt commitments
That leaves $4,300 for the proposed mortgage under this simplified calculation.
But here’s the catch: $4,300 is not necessarily the monthly instalment the bank will approve based on your actual loan rate. Banks assess property loans using prescribed stress-test rates and income calculations, so your eligible loan amount may be lower than you expect.
Your income matters, but so does what you already owe.
Does TDSR apply to HDB flats?
This is where buyers often get confused.
TDSR generally applies when you take a bank loan for a property, including an HDB resale flat. However, it does not apply to HDB concessionary loans, which are subject to HDB’s own eligibility and assessment requirements.
For HDB flats and applicable executive condominiums (ECs), the Mortgage Servicing Ratio (MSR) also matters. MSR limits the monthly mortgage repayment to 30% of gross monthly income for the relevant purchases.
So, what’s the difference?
TDSR: Looks at your total assessed monthly debt obligations.
MSR: Looks specifically at your monthly mortgage repayment for applicable HDB and EC purchases.
For example, someone buying an HDB flat with a bank loan may need to satisfy both limits. Meeting one does not automatically mean they meet the other.
How can you improve your TDSR?
If your borrowing capacity is lower than expected, there are a few areas worth reviewing before committing to a property.
1. Reduce existing debt. Paying down eligible outstanding loans can free up more room for a mortgage.
2. Review your budget. A lower-priced property may be more realistic than stretching your finances to the maximum.
3. Understand how your income is assessed. Bonuses, commissions and other variable income may not be counted in full by lenders.
4. Check your financing options early. A bank’s assessment or an in-principle approval can help you understand your borrowing position before you make commitments.
Remember, TDSR is a regulatory ceiling, not a recommendation to spend 55% of your income on debt. You still need money for daily expenses, property maintenance, emergencies and savings.
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The bigger picture
TDSR helps establish how much debt you may take on, but it cannot tell you whether a particular home is the right financial decision.
Before buying, consider the property price, downpayment, CPF usage, monthly repayments and the cash you want to retain after the purchase.
At CapStacked, property decisions are about understanding how the numbers fit into your wider financial plan — not simply borrowing the maximum amount available.
down payment
The goal isn't to buy the most expensive home the bank allows. It's to choose a home you can comfortably afford over the long term.
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