Mortgage Servicing Ratio (MSR)
What is MSR (Mortgage Servicing Ratio)?
The Mortgage Servicing Ratio (MSR) limits the monthly repayment on a loan for an HDB flat or a new executive condominium to 30% of the borrower's gross monthly income. It applies to both bank loans and HDB loans, and for bank loans it is checked alongside the Total Debt Servicing Ratio.
Key facts
- Limit
- 30% of gross monthly income
- Applies to
- HDB flats, and executive condominiums bought directly from the developer
- Loans covered
- Bank loans and HDB loans
- What counts
- Only the property loan repayment, not other debts
- Stress-test rate
- At least 4% a year for bank loans; 3% when HDB works out an HDB loan amount
As of 5 Nov 2026. Source: MAS, MoneySense.
How MSR works
MSR keeps the monthly mortgage on public and near-public housing affordable. The lender divides the monthly property loan repayment by your gross monthly income. The result must be 30% or less.
MSR = monthly property loan repayment ÷ gross monthly income
Unlike the Total Debt Servicing Ratio (TDSR), MSR looks only at the property loan. For bank loans, both limits apply, and the tighter one decides how much you can borrow.
Example
A couple earns a combined $9,000 a month before tax and is buying an HDB resale flat with a bank loan.
| Step | Amount |
|---|---|
| 30% of income | $2,700 a month |
| Largest 25-year loan at the 4% stress-test rate | About $512,000 |
The final loan is also capped by the loan-to-value limit, and by TDSR if the couple has other debts.
Where MSR applies
| Property | MSR applies? | TDSR applies? |
|---|---|---|
| HDB flat, bank loan | Yes | Yes |
| HDB flat, HDB loan | Yes | No |
| New EC from the developer | Yes | Yes |
| Private condominium or landed home | No | Yes |
Common mistakes
- Counting only one income. Lenders assess the combined income of all borrowers on the loan.
- Planning around the actual interest rate. Bank loans are tested at a minimum of 4%, which lowers the maximum loan.
- Assuming MSR applies to private property. It doesn’t; private property loans use TDSR.
Frequently asked questions
Does MSR apply to private condominiums?
No. MSR applies to HDB flats and to executive condominiums bought directly from the developer. Private property loans are subject to the Total Debt Servicing Ratio instead.
Does MSR apply to a resale executive condominium?
MAS applies MSR to executive condominiums bought directly from developers. A resale EC bought after its minimum occupation period is assessed under TDSR.
What happens if I fail both MSR and TDSR?
The tighter limit applies. You may need a smaller loan, a larger downpayment or another borrower on the loan.
Related terms
Sources
Every figure on this page was checked against the official government sources above on 5 Nov 2026. See our editorial policy.
This is general information, not financial, legal or tax advice.