TDSR and MSR Limits Explained

Two rules from the Monetary Authority of Singapore (MAS) decide how much you can borrow for a home: the Total Debt Servicing Ratio (TDSR) and the Mortgage Servicing Ratio (MSR). TDSR caps all your monthly debt at 55% of gross monthly income; MSR caps the home loan alone at 30%, but only for HDB flats and executive condos (ECs).

TDSR: 55% of income, all debts counted

TDSR is the main limit for every property loan. MAS sets the formula as:

Total monthly debt obligations ÷ gross monthly income × 100% — capped at 55%.

“Total monthly debt” includes the new mortgage plus car loans, personal loans, credit-card instalments, student loans and any other property loans. So the more existing debt you carry, the less room is left for a home loan.

MSR: 30%, HDB and EC only

MSR is an extra cap that applies only to loans for HDB flats and ECs bought from a developer. It limits the housing-loan repayment to 30% of gross monthly income. Private condo and landed purchases are not subject to MSR — only TDSR.

The two limits at a glance: TDSR cap 55% of gross income (all debts); MSR cap 30% of gross income (HDB & EC only); Applies to private property TDSR only; Stress-test rate (residential) Higher of 4% or prevailing rate

TDSR covers all debt; MSR adds a tighter cap for HDB flats and ECs.

For HDB and EC buyers, both rules apply at once, and the 30% MSR is usually the tighter of the two, so it is the one that caps your loan.

The stress-test rate matters more than the advertised rate

Lenders do not size your loan on the low promotional rate you see advertised. They use a medium-term stress rate — for residential property purchase loans, the higher of 4% or the prevailing rate — when computing TDSR. HDB applies its own floor (currently 3%) to work out an eligible HDB loan amount. This is deliberately conservative so you can still afford repayments if rates rise.

Worked example

	Figures
Gross monthly household income	S$8,000
MSR cap (30%)	S$2,400 available for the home loan
TDSR cap (55%)	S$4,400 available for all debt
Existing car loan	S$900/month
TDSR room left for mortgage	S$3,500

Illustrative: household earning S$8,000/month: MSR cap (30%) S$2,400; TDSR cap (55%) S$4,400; Existing car loan S$900; Room left for mortgage (TDSR) S$3,500; Binding cap for HDB/EC buyer S$2,400 (MSR)

For HDB/EC buyers the lower MSR ceiling usually decides the maximum loan.

Here the buyer is an HDB/EC household, so the mortgage repayment cannot exceed the lower of the two ceilings — S$2,400 under MSR. For a private home with no MSR, the S$3,500 TDSR figure would apply instead. These are illustrative figures, not a quote; actual loan size also depends on tenure, the stress rate and loan-to-value limits.

How this links to your loan type and deposit

TDSR/MSR set the repayment ceiling; separate loan-to-value (LTV) limits cap the loan at 75% of price or value for a first housing loan, with the rest as downpayment. Which loan you take also matters — compare the fixed HDB concessionary rate against bank packages in HDB loan vs bank loan.

Before you commit

Clear or reduce other debts to free up TDSR room.
Remember repayments are tested at the stress rate, not the teaser rate.
Check your grant eligibility, which lowers the loan you need — see CPF housing grants.
Confirm you meet the purchase rules in who can buy an HDB resale flat.

General information, not financial advice. Figures are illustrative; check MAS and HDB for the current rules.