TDSR and MSR: How Much Can You Actually Borrow in Singapore (2026)

You can love a unit and still not be allowed to borrow enough for it. Two MAS rules — the Total Debt Servicing Ratio (TDSR) and the Mortgage Servicing Ratio (MSR) — quietly set the ceiling on your loan before you've even made an offer. Here's how they work and which one bites.

The two rules in one minute

●        TDSR — 55%. Your total monthly debt repayments (home loan, car loan, personal and student loans, credit card minimums, and so on) cannot exceed 55% of your gross monthly income. It applies to all property loans.

●        MSR — 30%. Your monthly home-loan repayment alone cannot exceed 30% of your gross monthly income. MSR applies only to HDB flats and Executive Condominiums (ECs).

Which one applies to you?

●        HDB flat with an HDB (concessionary) loan: only MSR applies.

●        HDB flat with a bank loan: both apply — and MSR (the 30% cap) is usually the tighter, binding constraint.

●        Executive Condominium from a developer: both apply during the MOP.

●        Private condo / landed: only TDSR applies.

Where both apply, the lower of the two allowances is the one that limits your loan.

The two details that shrink your budget

The stress-test rate. Banks don't size your loan at today's interest rate. They apply a medium-term floor of 4% for residential property loans (or the prevailing rate, whichever is higher). So even if your actual rate is lower, your maximum loan is calculated as though you were paying around 4% — which meaningfully reduces how much you qualify for.

The variable-income haircut. If part of your income is variable — commissions, bonuses, allowances — only about 70% of it counts (a haircut of at least 30%). Self-employed and commission-based buyers should plan around this.

Don't forget Loan-to-Value (LTV)

Separately from the servicing ratios, LTV caps how much of the price you can borrow. For an HDB housing loan, the LTV limit is 75% (reduced from 80% on 20 August 2024). A first bank loan is also capped at up to 75% LTV for a loan within standard tenure limits. The rest comes from CPF and cash — so your down payment, not just your monthly budget, needs planning.

A simple way to think about it

Take your gross monthly income, apply the binding cap (55% TDSR, or 30% MSR for HDB/EC), subtract your existing monthly debt commitments, and that leftover is what's available to service a mortgage — sized at the 4% stress rate. Two buyers with identical incomes can qualify for very different loans purely because one carries a car loan and the other doesn't.

Practical tips before you apply

●        Clear or reduce high monthly commitments (car loans especially) before your loan assessment — they eat directly into your TDSR headroom.

●        Avoid taking on new unsecured borrowing in the months before you buy.

●        If you're buying HDB, remember your HFE letter already gives you HDB's own loan eligibility figure — a useful anchor. See the HFE guide in this cluster.

Frequently asked questions

Is the TDSR limit still 55%?

Yes. It was reduced from 60% to 55% in December 2021 and remains 55% in 2026. Any article still quoting 60% is out of date.

Does TDSR apply to an HDB loan?

No — an HDB concessionary loan is assessed on MSR (30%) only. TDSR applies when you take a bank loan.

Why is my approved loan lower than I expected?

Usually the stress-test rate (around 4%) and, if relevant, the 30% haircut on variable income. Both are designed to make sure you can service the loan if rates rise.

What counts as debt for TDSR?

Property loan repayments, car loans, personal and student loans, renovation loans, and credit card repayments — essentially your recurring monthly obligations.

This guide reflects MAS and HDB rules as of July 2026 and is general information, not financial or loan advice. Banks and HDB apply their own credit assessments — confirm your specific loan amount with a licensed lender. Zac Chen, ERA Realty Network Pte Ltd, CEA Reg. R069804F.