Concept
Total Debt Servicing Ratio (TDSR)
TDSR limits your total monthly debt repayments — the new mortgage plus every other loan — to 55% of gross monthly income.
What TDSR is
The Total Debt Servicing Ratio is a MAS rule that applies to every property loan in Singapore. A bank can only grant the loan if your total monthly debt obligations stay within 55% of your gross monthly income.
It replaced a patchwork of separate limits in 2013 and was tightened to the current 55% in 2021.
What counts towards TDSR
| Counts | Does not count |
|---|---|
| The new mortgage instalment (stress-tested) | Utility and mobile bills |
| Other property loans | Insurance premiums |
| Car and motorcycle loans | Rent you pay |
| Personal and renovation loans | Season parking, condo maintenance |
| Student loans | Day-to-day spending |
| Credit-card minimum payments |
How the mortgage figure is worked out
- The instalment is not computed at today's rate. Banks stress it at a medium-term floor — 4% for a bank loan on residential property.
- The stressed instalment depends on the tenure you choose, so a longer tenure lowers it and raises your borrowing headroom — up to the 30-year (HDB) / 35-year (private) cap.
- For a joint loan, TDSR is assessed on combined gross income, and variable income (commission, bonus, self-employed) is haircut by 30%.
Frequently asked questions
What is the TDSR limit in Singapore?
55% of gross monthly income. All your monthly debt repayments combined — the new mortgage plus car loans, personal loans, student loans and credit-card minimum payments — must not exceed this.
What interest rate is used to calculate TDSR?
Banks stress-test the new mortgage instalment at a medium-term rate floor, currently 4% a year for a bank loan on residential property, not the actual package rate. This is why a fall in market rates does not increase how much you can borrow.
Does rent I pay count towards TDSR?
No. Rent, utilities, insurance and everyday spending are not counted. TDSR looks only at contractual debt repayments.