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Buyers · 2026

TDSR calculator Singapore: understand your borrowing capacity

By Winfred Quek · 8 minute read · Last reviewed 27 Aug 2026

TDSR is a regulatory floor. Individual banks may apply stricter limits. As at 27 Aug 2026, the 55% cap is in effect for all property types.

Facts verified: Aug 2026 · Sources linked below

TDSR is the single biggest constraint on how much you can borrow as a property buyer in Singapore. Most buyers overestimate their borrowing capacity because they forget about car loans, personal loans, or credit card minimums that all count against the 55% ceiling. Get your actual TDSR right before house hunting, not after falling in love with a unit you cannot afford.

How TDSR is calculated

TDSR is calculated as follows:

All monthly debt payments include:

• Car loan instalments: If you owe SGD 500/month on a car loan, it counts.
• Personal loan instalments: Student loans, unsecured personal loans, anything borrowed.
• Credit card minimums: Banks include the minimum monthly payment, not just interest. A SGD 20,000 credit card balance at 3% per month interest (SGD 600) counts as SGD 600 in monthly debt if you are paying minimum.
• Hire purchase and leasing obligations: Any monthly instalment for assets counts.
• The new property loan instalment: The estimated monthly payment on the new mortgage you are seeking.

Gross monthly income includes base salary, allowances, and bonuses. However, bonuses are typically averaged over the last 2 to 3 years for TDSR purposes. If you received a one time bonus, it may not count, or it may be averaged conservatively by the bank.

Example TDSR calculation

Sarah earns SGD 10,000 gross per month. She has the following debts:

• Car loan: SGD 600/month
• Personal loan: SGD 400/month
• Credit card: SGD 100/month minimum

Her total current monthly debt is SGD 1,100. Her available TDSR room is 55% of SGD 10,000 = SGD 5,500. This means she can afford a new mortgage payment of SGD 5,500 - SGD 1,100 = SGD 4,400 per month.

To get the maximum loan quantum, the bank then divides SGD 4,400 by the estimated monthly payment per SGD 100,000 borrowed (which varies by interest rate and loan tenure). If the rate is 3% over 25 years, the monthly payment is approximately SGD 427 per SGD 100,000. Sarah can borrow SGD 4,400 / (SGD 427 / SGD 100,000) = approximately SGD 1.03 million.

This assumes a 25% downpayment and no change in interest rates.

TDSR vs MSR: the HDB difference

HDB buyers face an additional constraint: the Mortgage Servicing Ratio (MSR), which caps HDB loan instalments at 30% of gross monthly income. This is stricter than the TDSR ceiling for HDB specific loans.

For the same buyer with SGD 10,000 gross income, the HDB MSR ceiling is 30% of SGD 10,000 = SGD 3,000. Even if TDSR allows SGD 5,500 in total monthly debt (including the mortgage), the HDB loan itself cannot exceed SGD 3,000 per month.

Why does this matter? Because if a buyer takes a bank loan instead of an HDB loan for an HDB resale property, they are subject to the 55% TDSR cap but not the 30% MSR cap. This can sometimes allow a higher loan quantum, but at the cost of higher interest rates and less favorable terms than HDB loans.

How to improve your TDSR

• Pay off car loans and personal loans before applying for a mortgage. Every SGD 100 you eliminate in monthly debt payments frees up SGD 100 in mortgage capacity under the TDSR ceiling. This is the single most effective way to improve borrowing capacity.
• Increase gross income. Promotions, bonuses, or rental income from existing properties all increase gross income, which increases the TDSR ceiling. Rental income is particularly valuable because it allows additional borrowing without affecting your take home pay.
• Clear credit card balances. A SGD 50,000 balance at 24% annual interest costs SGD 1,000 per month in minimum payments (just the fee, not principal). Paying this off eliminates SGD 1,000 from your monthly debt servicing and frees up SGD 1,000 in mortgage capacity.
• Get pre approved with your intended bank before shopping. Pre approval locks in your borrowing capacity and prevents you from falling in love with a property above your actual limit. It also signals to sellers that you are a serious buyer.

Frequently asked questions

Is TDSR the same as affordability?

No. TDSR tells you the maximum a bank will lend. Affordability tells you what you can actually sustain financially. You may be able to borrow SGD 1.2 million under TDSR but only comfortably service a SGD 900,000 loan given your actual living expenses, savings goals, and risk tolerance. Always borrow less than TDSR allows.

Does rental income from an existing property count toward TDSR?

Yes, but conservatively. According to MAS guidelines, rental income is typically counted at 70% to 80% of actual rental revenue because of vacancy and maintenance assumptions. If you own a property that rents for SGD 4,000 per month, the bank may count SGD 2,800 to 3,200 in gross income. Net rental income (after expenses) is not counted.

Can my spouse's income be combined for TDSR?

Yes. If you and your spouse are joint applicants, the bank combines your gross incomes for TDSR calculation. However, the combined TDSR ratio must still be 55% or lower. This is particularly useful if one spouse has higher income and fewer existing debts.

Does TDSR include property taxes or insurance on the new property?

No. TDSR calculates only the principal and interest portion of the mortgage payment. Property tax, insurance, and other costs are excluded from TDSR but very much part of your total housing cost. Always budget for these separately.

Sources & References

• MAS: Total Debt Servicing Ratio Framework
• HDB: Loan Eligibility and Quantum
• PropertyGuru: Property Buyer's Guide

Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H), CEA Registration No. R073319H. The information on this page is general in nature and does not constitute financial, legal, or investment advice. As at 27 Aug 2026. Consult a bank or financial advisor for personalized borrowing advice.