TDSR and MSR in Singapore are the two income tests that decide how much a bank or HDB will lend you for a home. The Total Debt Servicing Ratio (TDSR) caps all your monthly debt repayments at 55% of gross income. The Mortgage Servicing Ratio (MSR) caps property loan repayments at 30% when you buy an HDB flat or a new executive condominium. Separately, loan-to-value (LTV) limits cap the loan as a share of the price.
The catch most borrowers miss: banks test you at a 4% interest rate, not today’s rate. Here is how each rule works, as at November 2026, with a worked example.
TDSR: The 55% Cap on All Your Debts
Under MAS’s rules, a bank or other financial institution may not grant a property loan if your total monthly debt repayments, including the new loan, would exceed 55% of your gross monthly income.
MAS’s calculation guide sets what goes in:
- Debts counted: all property loans, including the one you are applying for, plus car loans, student loans, renovation loans, credit card debt and other secured or unsecured loans.
- Income counted: gross monthly income before tax, excluding employer CPF contributions. Variable income (bonuses, commission, allowances) and rental income get a haircut of at least 30%.
- Assets can help: eligible financial assets can be converted into notional income over 48 months. Cash pledged for at least four years counts in full; unpledged cash takes a haircut of at least 70%.
MSR: The 30% Cap for HDB Flats and New ECs
MSR caps your property loan repayments at 30% of gross monthly income. It applies only to HDB flats and to executive condominiums still within their minimum occupation period. HDB applies the same 30% limit to its own loans, according to its loan guide.
For an HDB flat with a bank loan, both apply: MSR at 30% and TDSR at 55%.
The 4% Stress Test
Since 30 September 2022, MAS has required banks to work out TDSR and MSR at the higher of a 4% a year medium-term rate or the loan’s thereafter rate, for residential purchases (MAS, 29 September 2022). For non-residential property it is 5%. HDB introduced a separate 3% floor for calculating its own loan amounts, while its actual loan rate stayed pegged to the CPF Ordinary Account rate plus 0.1%.
So even if a bank offers 2% today, your limit is set as though you were paying 4%.
The short version: Your loan ceiling is the lowest of three numbers: what TDSR allows at a 4% test rate, what MSR allows for an HDB flat, and what the LTV limit allows on the price. A lower actual rate does not raise it.
LTV: How Much of the Price You Can Borrow
MAS’s LTV limits for individual borrowers, for options granted from 6 July 2018:
| Housing loans you already have | LTV limit | Minimum cash downpayment |
|---|---|---|
| None | 75% (or 55%) | 5% (or 10%) |
| One | 45% (or 25%) | 25% |
| Two or more | 35% (or 15%) | 25% |
The lower figure applies if the tenure exceeds 30 years (25 years for an HDB flat) or if the loan runs past age 65. Maximum tenure is 30 years for HDB flats and 35 years for other homes. An HDB loan lends up to 75% of the price or valuation, whichever is lower, over at most 25 years.
TDSR and MSR in Singapore: A Worked Example
An illustrative couple earn $10,000 a month in fixed salary between them and have an $800-a-month car loan. Our own figures; illustration only.
Buying an HDB resale flat with a bank loan (25 years):
- MSR limit: 30% x $10,000 = $3,000 a month.
- At the 4% test rate over 25 years, $3,000 supports a loan of about $568,000.
- TDSR check: $3,000 + $800 = $3,800, or 38%, under 55%. MSR is the binding limit.
Buying an HDB flat with an HDB loan (25 years):
- 30% x $10,000 = $3,000 a month.
- At HDB’s 3% floor, that supports about $632,000, subject to the 75% LTV limit and HDB’s own assessment.
Buying a private condo (30 years):
- TDSR limit: 55% x $10,000 = $5,500, less the $800 car loan = $4,700.
- At 4% over 30 years, about $984,000, subject to 75% LTV: a price of about $1.31 million before stamp duty.
If $2,000 of their income were commission, banks would count it at no more than $1,400, cutting every figure above.
What To Do Next
- Run your own figures through the home affordability calculator, then the mortgage repayment calculator at the rate you expect to pay.
- Clear or reduce car and personal loans before you apply: each dollar of repayment reduces your TDSR room.
- Compare loan types in HDB loan vs bank loan and packages in best home loans.
- Budget the cash you need beyond the loan with our guide to stamp duty on Singapore property.
