What is the MAS TDSR limit for property loans in Singapore?

MAS sets the Total Debt Servicing Ratio (TDSR) at 55% of gross monthly income. All monthly debt obligations -- mortgage, car loan, credit card minimums, student loans -- must not exceed 55% of the borrower's gross income.

What interest rate does MAS use to stress test mortgage applications in 2026?

Banks must stress test private property mortgage applications at a minimum of 4% per annum, regardless of the actual prevailing rate. This determines the maximum loan quantum a borrower qualifies for.

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Mortgage & Financing

TDSR at 4% Stress Test: How Much Condo Can One Household Income Buy in 2026

By Winfred Quek · CEA R073319H · 9-minute read · Last reviewed May 2026

Quick answer: MAS requires Singapore banks to stress test private property mortgages at 4% per annum regardless of the actual prevailing rate. On a single income of $8,000/month with no other debts, the maximum loan quantum is approximately $920,000 supporting a maximum condo purchase price of around $1.23M at 75% LTV. Each $1,000 increase in monthly income adds roughly $115,000 in loan capacity. Existing car loans, personal loans, or HDB loan balances directly reduce what you can borrow for the condo.

Facts verified: May 2026 · Sources linked below

How MAS TDSR works: the 55% rule explained

The Total Debt Servicing Ratio (TDSR) framework, introduced by MAS in 2013 and periodically updated, limits a borrower's total monthly debt obligations to 55% of their gross monthly income. Every loan counts mortgage, car loan, student loan, personal loan, credit card revolving balance (counted at 5% of the outstanding balance per month).

For private property mortgages, banks must additionally stress test the monthly instalment at a minimum interest rate of 4% per annum. This means even if the prevailing bank rate is 1.5%, the bank must check whether you can afford the instalment at 4% before approving the loan. The lower actual rate you pay is irrelevant to qualification.

The calculation in plain terms

Take your gross monthly income
Multiply by 55% this is your maximum total monthly debt allowance
Subtract all existing monthly debt payments (car instalment, personal loan, etc.)
What remains is the maximum monthly mortgage instalment you can qualify for
Back-calculate from that instalment: at 4% stress test rate, 30-year tenor, what loan quantum does that support?
Apply LTV (75% for first private property with no outstanding HDB loan) to get maximum purchase price

Maximum condo purchase price by income level

The table below assumes: no other debts, first private property, 75% LTV, 30-year loan tenor, MAS 4% stress test rate. All figures are approximate.

Gross Monthly Income	TDSR Ceiling (55%)	Max Monthly Mortgage	Max Loan (4% stress, 30yr)	Max Purchase Price (75% LTV)
$5,000	$2,750	$2,750	~$575,000	~$767,000
$6,000	$3,300	$3,300	~$690,000	~$920,000
$7,000	$3,850	$3,850	~$805,000	~$1,073,000
$8,000	$4,400	$4,400	~$920,000	~$1,227,000
$9,000	$4,950	$4,950	~$1,035,000	~$1,380,000
$10,000	$5,500	$5,500	~$1,150,000	~$1,533,000
$12,000	$6,600	$6,600	~$1,380,000	~$1,840,000
$15,000	$8,250	$8,250	~$1,725,000	~$2,300,000

The "max purchase price" figure assumes you can fund the 25% downpayment from CPF OA and cash. Use Winfred's Affordability Calculator to run your specific numbers including existing debts.

How existing debts erode your borrowing power

Every dollar of existing monthly debt obligation directly reduces the amount available for a mortgage. Here is the impact on an $8,000/month earner:

Existing Monthly Obligations	Remaining TDSR Headroom	Max Mortgage Instalment	Max Loan (4% stress)	Max Purchase Price
None	$4,400	$4,400	~$920,000	~$1,227,000
Car loan $1,200/month	$3,200	$3,200	~$669,000	~$892,000
Car loan $1,200 + personal loan $500	$2,700	$2,700	~$565,000	~$753,000
Car loan $1,200 + credit card $300 min	$2,900	$2,900	~$607,000	~$809,000
HDB loan balance $800/month outstanding	$3,600	$3,600	~$753,000	~$1,004,000

The car loan example is striking: a standard $100,000 car financed over 7 years costs approximately $1,200–$1,400/month. On an $8,000/month income, this single commitment reduces your maximum condo purchase price by over $300,000. Many upgraders are surprised to discover that clearing their car loan before applying for a mortgage significantly improves their qualifying power.

What happens if you still have an HDB loan?

If you are buying a private condo while still holding an HDB flat (for example, buying before selling under the ABSD remission route), the outstanding HDB loan is counted in TDSR. But there is more:

When you take a second property loan (the private condo mortgage) while the HDB loan is outstanding, the LTV on the new loan drops from 75% to 45%
The minimum cash downpayment on the second property loan rises to 25% (not 5%)
Both loan instalments must fit within the 55% TDSR ceiling

This combination higher downpayment, lower LTV, and both loan instalments counted makes buying condo before selling HDB significantly more expensive on a cash flow basis. Most upgraders sell the HDB first specifically to avoid this constraint.

Critical caveat income haircuts for variable income: MAS guidelines require banks to apply a 30% haircut to variable income components when computing TDSR. If your $10,000/month includes $3,000 in commissions or bonuses, the bank counts only 70% of that variable portion effectively treating your income as $8,100/month for TDSR purposes. Self-employed borrowers face a similar haircut, typically assessed on their NOA (Notice of Assessment) from IRAS averaged over 2 years. Commission based earners should confirm their "assessable income" with a mortgage banker before targeting a purchase price.

MSR vs TDSR: the EC and HDB difference

For HDB flats and Executive Condominiums (during the restricted period), MAS applies the Mortgage Servicing Ratio (MSR) in addition to TDSR. The MSR caps the mortgage instalment at 30% of gross monthly income more restrictive than the 55% TDSR ceiling.

Property Type	Applicable Ratio	Cap	Stress Test Rate
Private condo (freehold or leasehold)	TDSR only	55% of gross income	4% minimum
HDB flat (new or resale)	MSR + TDSR	30% of gross income (MSR binding)	3% for HDB loan; 4% for bank loan on HDB
EC (during restricted period)	MSR + TDSR	30% of gross income (MSR binding)	4% minimum
EC (after privatisation)	TDSR only	55% of gross income	4% minimum

For an $8,000/month earner buying an EC: MSR ceiling = $2,400/month mortgage. At 4% stress test, 30 years, that supports a loan of approximately $502,000. At 75% LTV (for EC, assuming first property), max purchase = ~$669,000. This is significantly lower than the $1.23M achievable for a private condo under TDSR alone illustrating why EC affordability is more constrained than private condo affordability for the same income level.

Decision checklist: running your own TDSR calculation

Step 1: List all existing monthly debt obligations. Car loan, personal loan, student loan, credit card minimum payments (5% of outstanding balance). Be precise banks will check your credit bureau report.

Step 2: Confirm your "assessable" gross income. Fixed salary: full amount. Variable/commission: 70% of that portion per MAS guidelines. Self-employed: 2-year NOA average from IRAS.

Step 3: Calculate TDSR headroom. Gross assessable income × 55% − existing debts = maximum monthly mortgage instalment.

Step 4: Back-calculate maximum loan. Use the formula: loan = monthly instalment × [(1+r)^n − 1] / [r × (1+r)^n], where r = 4%/12 and n = 360 months (30 years). Or use Winfred's Affordability Calculator.

Step 5: Apply LTV to get maximum purchase price. If first property loan with no outstanding loans: LTV = 75%, so purchase price = loan / 0.75. If second property loan (HDB still outstanding): LTV = 45%, purchase price = loan / 0.45.

Step 6: Check downpayment availability. At 75% LTV, you need 25% from CPF/cash (minimum 5% cash). At 45% LTV (second loan), you need 55% from CPF/cash (minimum 25% cash). Ensure your CPF OA and liquid savings cover this.