When you apply for a home loan in Singapore, two important terms will come up. These are the Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR).
Both are financial safeguards set by the government to prevent borrowers from overextending themselves. But for many homeowners, the calculations can feel confusing.
At IQrate, we help homeowners understand these ideas and plan better. This way, you can reach your homeownership goals without overspending.
Let’s break it down The IQrate Way.
What Is Mortgage Servicing Ratio (MSR)?
The Mortgage Servicing Ratio (MSR) only applies to HDB and Executive Condominium (EC from developer).
It sets a limit on how much of your gross monthly income can be used to repay your property loan.
✅ MSR cap: 30% of your gross monthly income
That means if you earn $10,000 per month, your total monthly mortgage repayment cannot exceed $3,000.
Formula: MSR % = (Monthly Mortgage Repayment ÷ Gross Monthly Income) × 100
Example:
Gross Monthly Income: $10,000
Monthly Mortgage Instalment: $2,500
MSR = ($2,500/$10,000) x 100% = 25%
✅ MSR Pass (Below the 30% MSR limit)
This rule ensures you borrow responsibly and remain financially stable even if interest rates fluctuate.
The IQrate Way: Our platform helps you calculate your MSR instantly: no spreadsheets, no guesswork. You can simulate different property prices and loan tenures to see what’s realistically affordable before applying.
What Is Total Debt Servicing Ratio (TDSR)?
The Total Debt Servicing Ratio (TDSR) is a measure for all private and HDB properties. This includes both private and public properties. It limits the portion of your gross monthly income that can be used to repay all debts combined, including:
- Home loans
- Car loans
- Personal loans
- Credit card balances
- Student loans, etc..
✅ TDSR cap: 55% of your gross monthly income
For example, if you earn $10,000 per month, your total monthly debt obligations cannot exceed $5,500.
Formula: TDSR % = (Total Monthly Debt Obligations ÷ Gross Monthly Income) × 100
Example:
Gross Monthly Income: $10,000
Monthly Mortgage Instalment: $2,500
Other Monthly Debt: $1,500
TDSR = ($4,000/$10,000) x 100% = 40%
✅ TDSR Pass (Below the 55% TDSR limit)
The Monetary Authority of Singapore (MAS) made two important frameworks in 2013. These are the Mortgage Servicing Ratio (MSR) and the Total Debt Servicing Ratio (TDSR).
Implemented as part of broader property cooling measures aimed at:
- Promoting financial prudence among borrowers,
- Ensuring sustainable debt levels, and
- Reducing systemic risks in the property market.
The 30% MSR cap applies to HDB and EC from developers. The 55% TDSR cap applies to all property loans. This includes both residential and non-residential properties. It covers new loans and refinancing. Exemptions for MSR/TDSR apply when someone meets certain conditions.
The IQrate Way: With IQrate’s digital tools, you can quickly check your TDSR limit. You can also see how different loan amounts or terms affect your borrowing power. You’ll know exactly where you stand before even approaching a bank.
Summary – TDSR vs MSR
| Criteria | MSR (Mortgage Servicing Ratio) | TDSR (Total Debt Servicing Ratio) |
|---|---|---|
| What It Measures | Measures how much of your income can go toward just your home loan instalment. | Measures how much of your income can go toward all monthly debt obligations combined. |
| Applicable To | – HDB BTO – HDB Resale – Executive Condominium (EC) (new & resale when taking a bank loan) | – All properties in Singapore: • HDB & EC (bank loan) • Private condo • Landed property • Commercial/industrial property |
| MSR / TDSR Limit | 30% of gross monthly income. | 55% of gross monthly income. |
| What Counts as Debt | Only the mortgage instalment for the HDB/EC purchase. | All monthly debt, including: • Home loan instalment • Car loan • Credit cards • Personal loan • Student loan • Renovation loan, etc.. |
| Income Considered | Gross monthly income from all borrowers combined. | Gross monthly income from all borrowers combined. |
How MSR and TDSR Affect Your Home Loan Approval
Banks use both ratios to determine how much they can lend you. Even if you have a good credit score and income, going over these limits can hurt your loan application.
However, the right loan structure can make a significant impact. Choosing the right loan term, interest rate type (fixed or floating), and repayment plan can help you stay compliant. This will also help you reach your property goals.
The IQrate Way: Our platform doesn’t just show rates, it helps you plan smarter. By knowing your MSR and TDSR ahead of time, you can plan your loan with confidence. This helps you make smart choices that match your budget.
Get Expert Help — Hybrid Advisory, The IQrate Way
Complex income streams, and unsure how banks interpret different income streams? Multiple loans? Or unsure how refinancing affects your ratios?
That’s where our in-house mortgage specialists come in.
Through IQrate’s hybrid model, you can connect with a mortgage broker for free, no-obligation advisory to discuss:
- How to optimise your borrowing capacity
- Ways to stay within MSR/TDSR limits
- Loan structures that fit your income and lifestyle
The IQrate Way: Technology for transparency, human expertise for peace of mind.
Empowering “I” in IQrate
At the core of IQrate is the “I” — representing you, the homeowner at the centre of every decision.
“I curate smart rates” means you can make informed and confident financial choices. You have support from real-time tools and expert guidance.
Whether you are buying your first flat or refinancing your property, IQrate helps you understand your numbers. It helps you make them work for you.
Smarter Planning Starts Here
Understanding MSR and TDSR is just the first step. Knowing how to navigate them strategically is what sets successful homeowners apart.
At IQrate, we make that process simple, transparent, and empowering all in one platform.
IQrate — I curate smart rates. Your home. Your plan. Your rate.