Guide
TDSR Explained — How Much Can You Borrow for a Condo?
Banks don't care about the condo you want. They care about one number: your Total Debt Servicing Ratio. It decides your maximum loan, your maximum property price, and ultimately what you can buy. Here's how it works.
Quick answer: TDSR caps your total monthly debt payments at 55% of gross income. Banks stress-test at 4%, not the actual rate. For a household earning $10,000/month, your max total debt payments are $5,500 — including car loans, credit cards, and your mortgage. That translates to a max loan of roughly $1.04M and a max property price of about $1.39M (at 75% LTV).
How TDSR works
TDSR is a simple ratio: your total monthly debt obligations divided by your gross monthly income. MAS says this ratio cannot exceed 55%.
TDSR = (All monthly debt obligations) / (Gross monthly income)
TDSR must be ≤ 55%
Banks use 4% stress test rate for the property loan portion. Other debts are counted at actual payment amounts.
The key insight: banks don't use your actual mortgage rate (e.g., 3.5%). They stress-test at 4% to ensure you can still pay if rates rise. This means your qualifying loan amount is lower than what the actual rate would suggest.
Maximum loan by income
Assumes: no other debts, 25-year tenure, 4% stress test, 75% LTV. SC first property.
| Gross Income | Max Debt (55%) | Max Loan | Max Property (75% LTV) |
|---|---|---|---|
| $6,000 | $3,300 | $625K | $833K |
| $8,000 | $4,400 | $833K | $1.11M |
| $10,000 | $5,500 | $1.04M | $1.39M |
| $12,000 | $6,600 | $1.25M | $1.67M |
| $15,000 | $8,250 | $1.56M | $2.08M |
Max loan = present value of max debt payment at 4% over 25 years. Max property = max loan / 0.75.
How debts reduce your buying power
Every dollar you owe each month comes straight off your TDSR headroom. A $1,000/month car loan doesn't just cost you interest — it costs you roughly $190K in lost buying power.
| Monthly Debts | Available for Mortgage | Max Loan | Max Property | Lost Buying Power |
|---|---|---|---|---|
| $0 | $5,500 | $1.04M | $1.39M | — |
| $500 | $5,000 | $950K | $1.27M | -$120K |
| $1,000 | $4,500 | $855K | $1.14M | -$250K |
| $1,500 | $4,000 | $760K | $1.01M | -$380K |
| $2,000 | $3,500 | $665K | $887K | -$503K |
Based on $10,000 gross income, 25-year tenure, 4% stress test, 75% LTV.
The takeaway: If you're planning to buy a condo, clearing debts before applying is one of the highest-leverage moves you can make. Paying off a $1,000/month car loan unlocks a quarter million in buying power.
Variable income and TDSR
Not all income is treated equally. Banks discount variable income — bonuses, commissions, overtime pay, and rental income — because it's not guaranteed. The typical haircut is 30%, though some banks go up to 50%.
Example:
Base salary: $10,000/mo (counted in full)
Average bonus: $5,000/mo (counted as $3,500 after 30% haircut)
Income for TDSR: $13,500/mo
Max debt at 55%: $7,425/mo. Without the bonus income, it would be $5,500/mo.
Rental income from existing properties is also discounted. Banks typically count 70-80% of net rental income (after deducting property tax and maintenance). If you earn $3,000/month in rent, the bank may count $2,100-$2,400.
Tip: If your bonus makes up a large portion of your income, ask multiple banks. Different banks apply different haircuts — the difference can be significant.
TDSR vs MSR
Two different limits, two different purposes:
| TDSR | MSR | |
|---|---|---|
| Cap | 55% | 30% |
| Measures | All debts | Property loan only |
| Applies to | Private property (bank loans) | HDB & EC (from developer) |
| Stress test rate | 4% | 4% |
For EC buyers: Both MSR and TDSR apply when buying from the developer. MSR limits your mortgage payment to 30% of income, and TDSR caps total debts at 55%. The binding constraint is usually MSR — it's the tighter limit.
For HDB buyers using a bank loan: TDSR applies (55% cap). If using an HDB loan, TDSR does not apply — but the MSR limit of 30% does.
Age, tenure, and LTV
Your age doesn't directly affect TDSR — but it affects your loan tenure, which affects how much you can borrow. The rules:
- Max tenure: 30 years (or 35 years for HDB loans)
- Age + tenure ≤ 65: Required for 75% LTV on first property
- Age + tenure > 65: LTV drops to 55%
| Your Age | Max Tenure (75% LTV) | Max Tenure (55% LTV) | Impact |
|---|---|---|---|
| 30 | 30 years | 30 years | Full flexibility |
| 35 | 30 years | 30 years | Full flexibility |
| 40 | 25 years | 30 years | Shorter tenure at 75% LTV |
| 45 | 20 years | 30 years | Much shorter tenure at 75% LTV |
| 50 | 15 years | 30 years | Consider 55% LTV option |
Shorter tenure = higher monthly payment = need more income to pass TDSR. A 45-year-old borrower at 20-year tenure needs ~20% more income than a 35-year-old at 30-year tenure for the same loan.
The trade-off: Older borrowers can opt for 55% LTV (bigger down payment) to get a longer tenure and lower monthly payments. But that means putting more cash upfront. There's no free lunch.
Calculate your max loan
Plug in your income, debts, and age — see exactly how much you can borrow and what property price that supports.
Affordability CalculatorFAQ
What is the TDSR limit in Singapore?
The Total Debt Servicing Ratio (TDSR) limit is 55%. This means your total monthly debt obligations — including your property loan, car loans, credit card minimum payments, personal loans, and student loans — cannot exceed 55% of your gross monthly income. This is set by MAS and applies to all property loans from financial institutions.
What interest rate do banks use for TDSR calculation?
Banks must use a stress test rate of 4% p.a. (also called the medium-term interest rate) when calculating your property loan payment for TDSR purposes. Even if your actual mortgage rate is 3.5%, the bank assesses your eligibility at 4%. This protects against future rate hikes.
Does TDSR apply to HDB loans?
No. HDB loans are exempt from TDSR. Instead, HDB loans are subject to the MSR (Mortgage Servicing Ratio) limit of 30%. If you take a bank loan for an HDB flat, then TDSR (55%) applies. For ECs purchased from developers, MSR (30%) applies.
How does variable income affect TDSR?
Banks typically apply a 30% haircut on variable income (bonuses, commissions, overtime, rental income). If you earn $10,000 base salary plus $5,000 in average monthly bonus, the bank counts $10,000 + $3,500 = $13,500 for TDSR purposes. Some banks are more conservative and may discount up to 50%.
Can I increase my TDSR limit?
No — the 55% cap is fixed by MAS regulation. But you can increase the income side of the equation: combine income with a co-borrower (spouse, parent, sibling), declare rental income from existing properties, or clear existing debts to free up more of your 55% for the property loan.
What debts are included in TDSR calculation?
All monthly debt obligations count: property loan payments, car loan instalments, personal loan payments, credit card minimum payments (typically 3.5% of outstanding balance), student loan payments, and any other recurring debt commitments. Even a $500/month instalment plan can significantly reduce your borrowing power.
Related Tools & Guides
- HDB to Condo Affordability Calculator — plug in your numbers, see your max budget
- What Salary Do You Need for a Condo? — income requirements at every price point
- How Much Cash to Buy a Condo — every dollar you need beyond the loan
- ABSD Complete Guide — rates, remission, and HDB upgrader scenarios
Last updated Feb 2026. TDSR: 55%, stress test: 4% (MAS). This is educational content, not financial advice.