Total Debt Servicing Ratio (TDSR)
What is TDSR (Total Debt Servicing Ratio)?
The Total Debt Servicing Ratio (TDSR) caps how much of your gross monthly income can go towards all your debt repayments when you take a property loan from a bank in Singapore. The limit is 55%, and banks must test your repayments at an interest rate of at least 4% a year.
Key facts
- Limit
- 55% of gross monthly income
- Applies to
- Property loans from banks and other financial institutions
- What counts
- All your monthly debt repayments, including the new property loan
- Stress-test rate (residential)
- The higher of 4% a year or the loan's actual rate
- Set by
- Monetary Authority of Singapore (MAS)
- Current limit since
- 16 December 2021 (lowered from 60%)
As of 5 Nov 2026. Source: MAS, MoneySense.
How TDSR works
TDSR stops borrowers from taking on more debt than their income can support. Before approving a property loan, a bank adds up all your monthly debt repayments, including the new loan, and checks that the total is no more than 55% of your gross monthly income.
TDSR = total monthly debt repayments ÷ gross monthly income
The repayment on the new loan is calculated at a stress-test rate, not the rate you will actually pay. For residential property it is the higher of 4% a year or the loan’s actual rate. For non-residential property it is at least 5%.
Example
You earn $12,000 a month before tax and pay $1,200 a month on a car loan.
| Step | Amount |
|---|---|
| 55% of income | $6,600 |
| Less existing car loan | −$1,200 |
| Room for a property loan repayment | $5,400 a month |
| Largest 30-year loan at the 4% stress-test rate | About $1.13 million |
Your actual loan may be smaller, because loan-to-value limits and the bank’s own checks also apply.
TDSR and MSR
If you’re buying an HDB flat or a new executive condominium with a bank loan, you must also pass the Mortgage Servicing Ratio (MSR). It caps the property loan repayment alone at 30% of income. Whichever limit is tighter decides how much you can borrow.
| TDSR | MSR | |
|---|---|---|
| Limit | 55% of gross monthly income | 30% of gross monthly income |
| Debts counted | All debts | Property loan only |
| Applies to | All property loans from banks | HDB flats and new ECs |
Common mistakes
- Using your package rate to estimate. Banks test at a minimum of 4%, so you will qualify for less than a low headline rate suggests.
- Ignoring other debts. A car loan can sharply cut how much you can borrow for a home.
- Assuming TDSR is the only limit. LTV limits and, for HDB flats and new ECs, the MSR also apply.
Frequently asked questions
Does TDSR apply to HDB loans?
No. TDSR is an MAS rule for loans from banks and other financial institutions. HDB assesses its own loans using the Mortgage Servicing Ratio and its own interest rate floor of 3%.
Why do banks use 4% if my loan rate is lower?
MAS requires banks to check that you could still afford repayments if rates rose. For residential property loans, they must use at least 4% a year, or the loan's actual rate if that is higher.
What debts count towards TDSR?
All regular debt repayments, such as car loans, personal loans and other property loans, plus the repayment on the new loan you are applying for.
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.