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Estimate your TDSR, maximum bank loan, affordable property price, and upfront costs.
Total Debt Servicing Ratio Calculator
The Total Debt Servicing Ratio (TDSR) is a framework used to limit how much of a borrower’s monthly income can be used to service debt.
Under the current TDSR framework, a borrower’s total monthly debt obligations generally cannot exceed 55% of their gross monthly income.
TDSR takes into account the proposed property loan together with other existing debt obligations, helping financial institutions assess whether the borrower can reasonably manage the loan.
Mortgage Servicing Ratio (MSR) is a financing limit that measures how much of your gross monthly income can be used to repay your housing loan.
The current MSR limit is 30% of gross monthly income.
MSR applies to housing loans for the purchase of HDB flats and Executive Condominium (EC) units bought directly from property developers. It generally does not apply to private condominiums or landed properties.
For example, if your gross monthly income is S$8,000, your monthly housing loan repayment would generally need to stay within S$2,400 under the 30% MSR limit.
MSR is different from TDSR because it focuses only on your housing loan repayment, while TDSR considers your total monthly debt obligations, including car loans, personal loans, credit card debts and other property loans.
TDSR is generally calculated using the following formula:
TDSR = Total Monthly Debt Obligations ÷ Gross Monthly Income × 100%
For example, if your recognised gross monthly income is S$10,000 and your total monthly debt obligations are S$4,500, your TDSR would be:
S$4,500 ÷ S$10,000 × 100% = 45%
As this is below the current 55% TDSR threshold, it would generally fall within the TDSR limit. Your actual home loan eligibility will still be subject to the financial institution’s assessment.
Total Debt Servicing Ratio (TDSR) considers your overall monthly debt obligations, which may include:
The purpose of TDSR is to assess your total debt burden rather than looking only at your new mortgage.
TDSR (Total Debt Servicing Ratio) measures your total monthly debt obligations against your gross monthly income. This includes your proposed home loan as well as other debts such as car loans, personal loans, credit card obligations and existing property loans. The current TDSR threshold is 55% of gross monthly income.
MSR (Mortgage Servicing Ratio) is more specific. It looks only at the monthly repayment for the housing loan and is capped at 30% of gross monthly income.
Unlike TDSR, which generally applies to property loans granted by financial institutions, MSR only applies to housing loans for the purchase of HDB flats and Executive Condominium (EC) units purchased directly from developers. It does not generally apply when purchasing a private condominium or landed property.
For property purchases where MSR applies, borrowers may need to meet both the 30% MSR limit and the applicable TDSR requirements. This means that even if your total debt falls within the TDSR limit, the amount you can borrow may still be restricted if your monthly housing instalment exceeds the MSR limit.
For example, if your gross monthly income is S$10,000, your monthly housing loan repayment would generally need to stay within S$3,000 under the 30% MSR limit, while your overall debt obligations would separately be assessed under TDSR.
Understanding your borrowing capacity before committing to a property can help you plan your purchase more confidently. By checking your estimated TDSR in advance, you can:
A few minutes spent checking your estimated affordability upfront can help you make a more informed property purchase and reduce potential delays during the home loan application process.
