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
Rates and thresholds change. The current figures are kept in one place: the Singapore property rules reference.
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 to $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% (this applies where loan tenure is 30 years or less and loan tenure plus your age does not exceed 65; it drops further to 25% if either threshold is breached, per MAS)
- 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.
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
Related reading
- HDB resale vs new launch condo 2026: real numbers for a $1.2M budget
- HDB MOP upgrade timeline
- Fixed vs floating mortgage: which to choose in 2026
- EC new rules 2026: 10 year MOP and no DPS
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Book a free call 30 minWinfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd, advising Singapore upgraders, investors, and family offices. CEA R073319H. The information on this page is general and does not constitute financial, investment, or mortgage advice.
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Frequently asked questions
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.
The information and insights on this page are for informational purposes only. TDSR, MSR and loan quantum figures referenced here are illustrative estimates based on the current MAS stress test rate and can change; confirm your exact qualifying loan amount with your bank or mortgage broker. This page is not legal, financial, or professional advice. Conduct your own due diligence and seek qualified advice. CEA R073319H. Crestbrick Pte Ltd L31010886H.
How does this apply to your own numbers?
General rules only take you so far. What actually decides your move is your financing, your timeline, and what you already own. A Property Portfolio Analysis maps your real position, so you are deciding on your own figures rather than a rule of thumb.
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