The honest answer depends on your existing debt, your age, and your loan tenure, but here is the methodology using MAS's own stress test framework so you can run your own numbers.
Step 1: work out the loan you need
At 75% Loan to Value on a first housing loan with no other outstanding mortgage, a $1.5 million condo needs a bank loan of $1,125,000, with the remaining 25%, $375,000, from cash and CPF.
Step 2: convert the loan to a stress tested instalment
Banks in Singapore do not test your repayment ability at the roughly 1.5% rate you might actually be offered. MAS requires a stress test at 4.0% regardless. Over a 30 year loan at 4.0%, the instalment works out to roughly $4.77 per $1,000 borrowed. On $1,125,000, that is about $5,366 a month.
Step 3: back into the required income via TDSR
The Total Debt Servicing Ratio (TDSR) caps all monthly debt, housing and everything else, at 55% of gross monthly income. If you have no other debt, $5,366 must be at most 55% of your income, which puts the required gross monthly income at around $9,758, or roughly $117,090 a year.
| Step | Figure |
|---|---|
| Loan needed (75% LTV) | $1,125,000 |
| Stress tested instalment (4.0%, 30 years) | ~$5,366 / month |
| Required gross income (55% TDSR, no other debt) | ~$9,758 / month |
Existing debt shrinks your borrowing power fast
Any existing monthly debt, a car loan, a personal loan, another mortgage, is subtracted from the TDSR envelope before it is converted into housing loan capacity. A $700 monthly car loan alone can remove roughly $147,000 of borrowing power at the stress tested rate, which either raises the income you need or lowers the price you can afford.
Do not forget the cash needed to get the keys
Beyond servicing the loan, you need $375,000 in cash and CPF for the 25% downpayment (of which at least $75,000 must be cash), plus roughly $44,600 in Buyer's Stamp Duty due within 14 days of the Option to Purchase. If this is a second property, add 20% Additional Buyer's Stamp Duty, $300,000 on $1.5 million, to that upfront cash requirement.
Frequently asked questions
Does the bank use the actual interest rate I will pay to calculate how much I can borrow?
No. Banks stress test your repayment ability at 4.0% regardless of the roughly 1.5% rate you may actually be offered, which is why your real borrowing power is often lower than a quick instalment calculation suggests.
Does this income figure change if I already have a car loan or other debt?
Yes, significantly. Any existing monthly debt is subtracted from your Total Debt Servicing Ratio envelope before it is converted into housing loan capacity, so a $700 monthly car loan alone can reduce your borrowing power by roughly $147,000.
Want your exact number, not a rule of thumb?
Winfred runs your real TDSR headroom, existing debt, CPF position and cash on hand against your target price, in a free 30 minute call.
Book a free 30 minute callWinfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H). CEA R073319H. This page is for general information only and does not constitute financial, investment, or legal advice. Rates and rules reflect the position as at 3 Aug 2026; verify current figures with IRAS, HDB, or MAS before making any decision.