The Total Debt Servicing Ratio (TDSR) is a Monetary Authority of Singapore (MAS) rule that caps the total monthly debt repayments a borrower can commit to at 55% of gross monthly income when taking a property loan in Singapore — covering the new mortgage plus every other existing debt obligation.

Not financial advice. All figures are for educational reference only. Data as at August 2026. Last updated: August 2026.

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Key Takeaways

• TDSR caps all monthly debt obligations — mortgage, car loan, credit card minimums, other loans — at 55% of gross monthly income for property loans in Singapore.
• Introduced by MAS in June 2013 and tightened to 55% in the December 2021 cooling measures; it applies to both private property and HDB bank loans.
• Banks compute TDSR using a stress-test interest rate — a buffer rate above today’s mortgage rate — so your approved loan amount is based on a higher hypothetical rate, not just the rate you’re actually paying.
• Variable income — commissions, bonuses, rental income, self-employed earnings — typically has a haircut applied (commonly around 30%) before it counts toward TDSR.
• HDB flats and ECs bought directly from HDB or a developer also require satisfying the separate Mortgage Servicing Ratio (MSR), capped at 30% of gross income, on top of TDSR.

What Is Total Debt Servicing Ratio (TDSR)?

TDSR was introduced on 29 June 2013 as part of Singapore’s property cooling measures, in the aftermath of a multi-year run-up in property prices fuelled partly by historically low interest rates. Before TDSR, a bank could approve a mortgage based mostly on the applicant’s income and the property’s value, without systematically accounting for every other debt the borrower was already carrying.

TDSR fixed that gap with a single formula: Total monthly debt obligations ÷ Gross monthly income ≤ 55%. It was tightened from an original 60% threshold to 55% under the 16 December 2021 cooling measures, alongside a lower Loan-to-Value (LTV) limit for HDB loans. The rule applies bank-wide — every MAS-regulated bank and finance company must apply the same 55% ceiling when assessing a property loan application, which makes it one of the more standardised borrowing limits in Singapore’s financial system.

How Does It Work in Singapore?

Almost every recurring debt obligation counts toward the TDSR numerator, not just the new mortgage:

• All existing mortgages (including investment properties)
• Car loans and renovation loans
• Education loans
• Personal loans and guarantor obligations you’ve taken on for someone else
• Credit card debt — often approximated as around 3% of the outstanding statement balance per month

Banks don’t use today’s mortgage rate to compute your eligible loan amount. They apply a stress-test interest rate — historically around 4% per annum for private property loans, a floor MAS periodically reviews and revises — so your maximum loan quantum is calculated as if rates were higher than they currently are. This protects both the bank and the borrower against a future rate-hike scenario.

HDB flats and ECs bought directly from HDB or a developer must additionally satisfy the Mortgage Servicing Ratio (MSR), capped at 30% of gross income and counting only mortgage-related debt. For most HDB buyers, MSR — not TDSR — ends up being the binding constraint, since 30% is a lower ceiling than 55%.

Example

Consider a borrower earning a fixed gross monthly income of S$8,000, with an existing car loan repayment of S$600/month and a credit card minimum obligation of roughly S$150/month.

Maximum total debt allowed under TDSR = 55% × S$8,000 = S$4,400/month. After subtracting the S$600 car loan and S$150 credit card obligation, S$3,650/month remains available for a new mortgage.

Using a stress-test rate of around 4% per annum over a 25-year tenure, a monthly repayment capacity of S$3,650 translates to an estimated maximum loan quantum of roughly S$690,000 — illustrative only, since the exact figure depends on each bank’s current stress-test assumptions and the borrower’s full financial profile.

Advantages

• Protects borrowers from over-borrowing. By capping total debt against income, TDSR reduces the risk of a borrower taking on more mortgage than their overall finances can comfortably support.
• Reduces system-wide default risk. A standardised ceiling across all banks keeps household leverage — and by extension bank balance sheets and the property market — more stable through economic cycles.
• Stress-testing builds in a rate-hike buffer. Because approval is based on a higher hypothetical rate, borrowers have some built-in cushion if interest rates rise after they take the loan.
• Transparent and comparable across banks. Since every MAS-regulated lender applies the same 55% ceiling, borrowers can compare offers without worrying that one bank is using a radically more lenient debt test than another.

Risks and Limitations

• It can restrict borrowing power for otherwise creditworthy buyers. Someone with existing debt or irregular income may qualify for a smaller loan than their true repayment capacity would suggest.
• Income haircuts can understate real capacity. Landlords and commission-based earners may feel the 30% haircut on rental or variable income doesn’t reflect their actual, consistent cash flow.
• Liquid assets aren’t counted. TDSR doesn’t give credit for large cash savings or investments that could service debt without straining monthly cash flow.
• It’s a point-in-time test. TDSR is assessed at loan application; it doesn’t protect a borrower from a post-purchase income shock like job loss further down the road.
• The interplay with MSR and guarantors can be confusing. First-time HDB buyers in particular can be caught off guard by MSR binding before TDSR does.

TDSR vs MSR

The Bottom Line

TDSR is the ceiling that decides how much total debt — not just mortgage — a Singapore borrower can carry. Work out your own number, including every existing loan and credit card obligation, before house-hunting so you’re not caught off guard at the loan-approval stage.

Frequently Asked Questions

Related Terms

• Prime Lending Rate Singapore
• SORA Rate
• Credit Bureau Singapore (CBS)
• Credit Utilisation Ratio