The Total Debt Servicing Ratio (TDSR) is the portion of a borrower’s gross monthly income that goes towards every monthly debt obligation, including the property loan under application. MAS sets the threshold at a maximum of 55%.
Key takeaways
- TDSR is capped at 55% of gross monthly income for property loans where the Option to Purchase was granted on or after 16 December 2021.
- All debt counts: property loans, car loans, student loans, renovation loans, credit card balances and other secured or unsecured borrowing.
- The instalment on the loan under application is computed at the higher of a medium-term interest rate floor — 4% p.a. for residential and 5% p.a. for non-residential property — and the thereafter rate.
- Variable income such as commission, bonus and allowance, and rental income, are reduced by at least 30% before being counted.
- Loans above the 55% threshold are expected only in exceptional cases, which lenders document, subject to enhanced credit evaluation and report to MAS.
How TDSR is calculated
TDSR is total monthly debt obligations divided by gross monthly income, expressed as a percentage. Existing commitments reduce the room available for a new property loan: where a borrower’s existing debt already takes up 10% of monthly income, the property loan is sized against the remaining 45%. Where the ratio would exceed 55%, the loan amount is reduced.
What counts as debt and as income
- Debt includes property loans, car loans, student loans, renovation loans, credit card balances and other secured or unsecured borrowing
- Gross monthly income is income before tax, excluding employer CPF contributions
- Variable income and rental income carry a minimum haircut of 30%
- Variable income is averaged over the preceding 12 months
- Certain eligible financial assets can be included, subject to haircuts and amortisation over 48 months
The medium-term interest rate
Because property loans run for decades, lenders test affordability at a medium-term interest rate rather than the rate on offer at the start. For residential property purchase loans and mortgage equity withdrawal loans this is the higher of a 4% floor and the thereafter rate; for non-residential property it is the higher of a 5% floor and the thereafter rate. The thereafter rate is the highest rate the lender charges at any point over the tenure, typically after the introductory or lock-in period.
TDSR and MSR
A loan from a financial institution for an HDB flat or an Executive Condominium within its Minimum Occupation Period has to meet both the 55% TDSR and the 30% Mortgage Servicing Ratio. A loan for private property is subject to the TDSR only. An HDB housing loan is not subject to the TDSR; it applies the 30% instalment limit instead.
Key TDSR figures
| Item | Figure |
|---|---|
| TDSR threshold | 55% of gross monthly income |
| Medium-term interest rate floor — residential property | 4% p.a. |
| Medium-term interest rate floor — non-residential property | 5% p.a. |
| Minimum haircut on variable and rental income | 30% |
| Eligible financial assets | amortised over 48 months |
Figures as at 2026. Source: MAS.
Worked example
On a gross monthly income of SGD 10,000, the TDSR limits total monthly debt repayments to 55%, or SGD 5,500. If a car loan and credit card minimums already account for SGD 1,000 a month, the housing loan instalment — computed at the higher of the 4% floor and the thereafter rate — is limited to SGD 4,500.
Related terms
All Singapore glossary terms →Related calculator
Work out how much of the 55% TDSR limit existing debts use up before a property loan.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to MAS and seek independent professional advice before making any financial decisions.