TDSR vs MSR Singapore Home Loan Guide

TDSR and MSR are two different affordability limits used for property financing in Singapore. The Total Debt Servicing Ratio (TDSR) looks at all your monthly debt repayments and is generally capped at 55% of gross monthly income. The Mortgage Servicing Ratio (MSR) looks only at the housing instalment and is capped at 30% for applicable HDB-flat and executive-condominium purchases. A borrower may need to satisfy one or both tests, as well as the loan-to-value limit and the lender’s own credit assessment.

TDSR vs MSR at a glance

Measure	What it measures	General threshold	Where it commonly applies
TDSR	All monthly debt repayments divided by gross monthly income	55%	Property loans from financial institutions, subject to applicable rules and exceptions
MSR	Monthly mortgage instalment divided by gross monthly income	30%	Loans for HDB flats and executive condominiums where the EC minimum occupation period has not expired

These percentages are regulatory ceilings, not a promise that a bank or HDB will lend up to the maximum. The approved amount can be lower after income, age, loan tenure, existing debts, credit history, property valuation and other requirements are assessed.

What is the Total Debt Servicing Ratio?

TDSR measures the share of gross monthly income used to service all monthly debt. MoneySense gives the formula as:

TDSR = total monthly debt repayments ÷ gross monthly income.

The current TDSR threshold is 55%. Besides the proposed property loan, relevant commitments can include other mortgages, car loans, personal loans and credit-card debt. The financial institution performs the calculation under the applicable MAS rules and its internal credit policies. MAS explains that the framework is intended to reduce over-leveraging and strengthen prudent lending.

TDSR does not tell you whether the property price itself is acceptable to the lender. The loan must also fit the applicable loan-to-value (LTV) limit, valuation and tenure rules.

What is the Mortgage Servicing Ratio?

MSR focuses on the mortgage instalment rather than every debt:

MSR = monthly mortgage repayment ÷ gross monthly income.

MoneySense states that the monthly instalment must not exceed 30% of gross monthly income when buying an HDB flat or an executive condominium whose minimum occupation period has not expired. For a bank loan used to buy such a property, both the MSR and TDSR can be relevant. MoneySense’s comparison shows a 30% MSR for both HDB and bank loans, while the 55% TDSR applies to bank financing; HDB housing loans remain subject to HDB’s credit assessment and requirements.

MSR generally does not apply to a private condominium or landed-home purchase, but a bank-financed purchase remains subject to TDSR and other lending rules.

Worked example: when both limits apply

Assume a household has S$10,000 in gross monthly income and is applying for a bank loan to buy an HDB resale flat. The proposed mortgage instalment is S$2,800 a month, and existing car and other loan repayments total S$1,200 a month.

MSR: S$2,800 ÷ S$10,000 = 28%. This is within the 30% threshold.
TDSR: (S$2,800 + S$1,200) ÷ S$10,000 = 40%. This is within the 55% threshold.

Now assume the proposed mortgage instalment rises to S$3,200 while the other debts stay the same. TDSR would be 44%, but MSR would be 32%. The application could therefore exceed the MSR ceiling even though it remains within TDSR.

This is only an illustration. A lender will use its verified income and debt figures, applicable interest-rate assumptions, and its own underwriting criteria. The final approved loan can be smaller.

Why an online affordability calculation can differ from the bank

A simple calculator cannot reproduce a full credit assessment. Differences may arise because the lender verifies income and liabilities, treats variable or irregular income under prescribed methods, considers the remaining tenure and borrower’s age, and applies the applicable assessment interest rate. Credit facilities or debts not included in your estimate can also affect the outcome.

For planning, obtain a bank in-principle approval before committing to a purchase. It remains indicative rather than a final loan offer, but it can expose affordability constraints early.

How to improve your home-loan affordability position

List every monthly debt repayment. Include existing mortgages, vehicle financing, personal loans and revolving credit commitments.
Avoid taking new debt before the application. A new car or personal loan can reduce the room available under TDSR.
Reduce expensive outstanding balances. Repaying debt may improve monthly cash flow, but check early-settlement charges and retain an emergency reserve.
Choose a property within a sustainable budget. Passing a ratio does not mean the maximum instalment is comfortable after household expenses.
Compare tenure carefully. A longer tenure may lower the monthly instalment but normally increases total interest and can affect the applicable LTV limit.
Prepare complete income documents. Ask the lender what evidence is required, particularly for commission, bonus, rental or self-employed income.

If you are deciding between funding structures, see our HDB loan versus bank loan guide. Buyers considering a resale flat should also budget for any cash over valuation, because COV cannot be covered by CPF Ordinary Account savings.

Other limits still matter

Passing TDSR or MSR is only one part of approval. The maximum loan may also be constrained by LTV limits, property valuation, cash-downpayment requirements, CPF usage limits, remaining lease, loan tenure, age and the lender’s credit assessment. MoneySense recommends planning for upfront costs, ongoing property expenses and possible future interest-rate increases—not only the initial monthly instalment.

Frequently asked questions

What is the difference between TDSR and MSR?

TDSR counts all monthly debts, while MSR counts only the monthly housing instalment. TDSR is generally capped at 55%; MSR is capped at 30% where it applies.

Do I need to pass both TDSR and MSR for an HDB flat?

For a bank loan used to buy an HDB flat, both limits can apply. An HDB housing loan is subject to the 30% MSR and HDB’s own eligibility and credit assessment; MoneySense lists TDSR as not applicable to the HDB loan itself.

Does MSR apply to private property?

MSR generally applies to purchases of HDB flats and ECs where the minimum occupation period has not expired. Private-property bank loans remain subject to TDSR, LTV and the lender’s assessment.

Does passing TDSR guarantee my loan?

No. The lender also considers the property, valuation, LTV limit, loan tenure, income reliability, credit profile and internal policies.

Can paying off a car loan increase how much I can borrow?

It may reduce monthly debt commitments and create more room under TDSR, but approval is not automatic. Check settlement costs and do not exhaust cash needed for the property and emergencies.

Does a longer loan tenure help me pass the ratios?

It may lower the calculated monthly instalment, but it usually increases total interest. A longer tenure can also trigger a lower LTV limit in certain circumstances.

Should I borrow up to the maximum ratio?

Not necessarily. Regulatory limits are ceilings. Leave room for living costs, income disruption, maintenance and higher instalments if interest rates rise.

Check your borrowing range before making an offer

LoanSupermart can help you compare suitable bank home-loan packages and understand how TDSR, MSR, loan tenure and existing commitments may affect the indicative financing range. Final approval and terms remain subject to each lender’s assessment.

WhatsApp +65 9452 1182 for a home-loan assessment.

Official sources

Important: This article provides general information, not personal financial advice or a loan offer. Rules, assessment methods, rates, fees and lender policies can change. Confirm the latest requirements with the relevant authority and lender, review the property loan fact sheet and borrow within a sustainable budget. Last reviewed: 28 September 2026.