When applying for a property loan in Singapore, two credit limits determine how much you can borrow: the Mortgage Servicing Ratio (MSR) and the Total Debt Servicing Ratio (TDSR). Both apply simultaneously in some cases, but they serve different purposes.

Mortgage Servicing Ratio (MSR)

The MSR limits the portion of your gross monthly income that can service a mortgage on an HDB flat or Executive Condominium (EC) within the first 10 years.

  • Cap: 30% of gross monthly income
  • Applies to: HDB flat loans and bank loans for ECs within the first 10 years
  • Does not apply to: Private residential properties

Example: Gross household income = $10,000/month. Maximum HDB mortgage repayment = $3,000/month.

Total Debt Servicing Ratio (TDSR)

The TDSR caps the total proportion of income used to service all debt — including property loans, car loans, personal loans, and credit card minimums.

  • Cap: 55% of gross monthly income
  • Applies to: All property loans in Singapore

Example: Income $10,000/month, existing car loan $800/month. Maximum total debt = $5,500, so maximum mortgage = $4,700/month.

How They Work Together

For HDB flat buyers, both MSR and TDSR apply simultaneously — the more restrictive limit wins. In practice, MSR (30%) is almost always the binding constraint for HDB buyers since it is lower than TDSR (55%).

For private property buyers, only TDSR applies — there is no MSR.

The Stress Test Rate

Banks calculate MSR and TDSR using a stress test rate — currently a minimum of 4% p.a. — not your actual loan rate. This ensures you can still service the loan if rates rise. Your actual repayment at the contracted rate will be lower than the stress-tested amount used for eligibility.

How to Improve Your Borrowing Capacity

  • Pay down or eliminate existing debts before applying — every existing repayment reduces TDSR headroom.
  • Include all income sources. Variable income (bonuses, commissions) is typically counted at 70% of the past 12-month average.
  • Apply jointly with a co-borrower to combine income.

For a full breakdown, see our TDSR deep-dive. Use the mortgage calculator to model different loan scenarios.