TDSR, Total Debt Servicing Ratio, caps all monthly debt repayments at 55 percent of gross monthly income, stress tested at 4 percent per annum. It applies to every bank home loan in Singapore and usually reduces the approved loan below what a simple income multiple would suggest.

What is TDSR? — Singapore property glossary

What is TDSR? TDSR, Total Debt Servicing Ratio, is a Monetary Authority of Singapore rule capping all monthly debt repayments, including the new mortgage, car loans and credit cards, at 55 percent of gross monthly income. Banks stress test the mortgage portion at 4 percent per annum, so approved loans often run smaller than expected.

TDSR applies to every bank home loan in Singapore, including a bank loan used for an HDB flat. It does not apply to HDB's own concessionary loan, which is assessed instead through the HDB Flat Eligibility letter process.

Even though typical bank mortgage rates in 2026 run around 1.5 percent per annum, banks size the maximum loan using a 4 percent stress test rate, or the actual rate if higher. Variable income such as commission, bonus or rental is typically haircut to 70 percent of its value before it counts toward the 55 percent ceiling.

Worked example: on S$10,000 gross monthly income with no other debt, the 55 percent ceiling allows up to S$5,500 a month toward the new instalment, which, stress tested at 4 percent over 25 years, services roughly S$1.04 million of loan. For HDB flats and Executive Condominiums, the tighter MSR cap applies on top of TDSR.

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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.

TDSR

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