MSR, Mortgage Servicing Ratio, caps the monthly housing loan instalment at 30 percent of gross monthly income for HDB flats and Executive Condominiums, on top of the general 55 percent TDSR ceiling that applies to all debt.

What is MSR? — Singapore property glossary

What is MSR? MSR, Mortgage Servicing Ratio, is a tighter borrowing cap that applies only to HDB flats and Executive Condominiums, limiting the monthly housing instalment to 30 percent of gross monthly income. It applies on top of the wider 55 percent TDSR ceiling, and the stricter of the two determines the maximum loan.

MSR exists because HDB and EC buyers already receive subsidised pricing or grants, so the Monetary Authority of Singapore applies an additional, tighter check on housing affordability for these property types.

MSR only covers the housing loan instalment itself, not other debts, unlike TDSR which covers all debt obligations at a 55 percent ceiling. For HDB and EC purchases, both apply simultaneously, and whichever produces the lower loan quantum wins. Private condominium purchases are governed by TDSR alone, which is one reason borrowing capacity often rises when a buyer upgrades from HDB to private property.

MSR applies for as long as the flat remains within its first 10 years as an EC, or indefinitely for an HDB flat financed with a bank loan.

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Winfred 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. Verify current figures with IRAS, HDB, CPF Board, or MAS before making any decision.

MSR

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