Quick answer
TDSR (55% cap on all your monthly debts) applies to every property purchase. MSR (30% cap on just the new home loan) applies only when you buy an HDB flat or a brand-new Executive Condominium from a developer. For HDB and new ECs, the bank checks both and approves the lower number.
What's in this guide
What is TDSR?
TDSR (Total Debt Servicing Ratio) is a Monetary Authority of Singapore (MAS) rule introduced in June 2013. It caps your total monthly debt obligations at 55% of your gross monthly income. The cap was tightened from 60% to 55% in December 2021 and has stayed there through 2026.
Every monthly debt is included: existing home loans, car loans, credit card minimum payments, personal loans, student loans, renovation loans, and the new property loan you are applying for (computed at the MAS-mandated 4.0% stress test rate). If the total exceeds 55% of gross income, the bank cannot approve the loan — this is regulator policy, not bank discretion.
For a complete walkthrough including income haircuts, LTV rules, loan tenure caps, and an interactive calculator, see our TDSR Calculator Singapore 2026 guide.
What is MSR?
MSR (Mortgage Servicing Ratio) is a separate MAS rule that caps the new property loan repayment alone at 30% of your gross monthly income. Unlike TDSR, MSR ignores all your other debts — it focuses on whether the new housing loan is affordable in isolation.
MSR was introduced specifically because public housing affordability is a policy priority. MAS wanted to ensure HDB buyers don't stretch into mortgages that consume more than a third of their pay, even if they otherwise have low debt elsewhere. The 30% threshold has been in place since 2013.
Crucially, MSR applies in only two situations:
- You're buying an HDB flat (BTO, resale, or executive flat)
- You're buying a brand-new Executive Condominium (EC) directly from the developer
If you're buying any private property — condo, landed, or a resale EC after its 5-year Minimum Occupation Period — MSR does not apply. Only TDSR.
TDSR vs MSR: Side-by-Side Comparison
| TDSR | MSR | |
|---|---|---|
| Cap | 55% of gross income | 30% of gross income |
| What it covers | All monthly debts (home + car + credit cards + everything) | Just the new housing loan repayment |
| Applies to | Every property purchase — HDB, EC, condo, landed | HDB flats and new ECs only |
| Stress test rate | 4.0% per year (residential) | 4.0% per year (residential) |
| Income haircut | 30% on variable income (commission, bonus, rental) | Same 30% haircut applies |
| Pledged assets | Allowed — boosts income for both ratios | Allowed — same treatment |
| Refinancing exemption | Yes — TDSR doesn't apply when refinancing your owner-occupied loan without cashing out | Same exemption applies |
| Authority | MAS Notice 645 / 825 | MAS Notice 632 / 825 |
Decision Tree: Which Rule Applies to You?
Start: What are you buying?
- HDB flat (any type, BTO or resale): Both TDSR (55%) and MSR (30%) apply. Bank approves the lower of the two loan amounts.
- New EC (from developer, before MOP): Both TDSR and MSR apply. Same as HDB.
- Resale EC (after 5-year MOP): Only TDSR applies. MSR is dropped because the EC is now treated as private property on the resale market.
- Private condo or apartment: Only TDSR applies.
- Landed property (terrace, semi-D, bungalow): Only TDSR applies.
- Commercial or industrial property: Only TDSR applies, but the stress test rate is 5.0% instead of 4.0%.
Why MSR Almost Always Bites First for HDB/EC
For typical HDB and EC buyers — salaried couples without large existing debts — MSR is the rule that actually caps the loan, not TDSR. This is because:
- MSR's 30% cap is on the new housing loan alone, while TDSR's 55% cap covers all debts including the new mortgage.
- If you have minimal existing debt (say $200/month in credit card minimums), TDSR has plenty of headroom — but MSR is calculated only on the new loan, so it hits the cap much faster.
- Under MSR, every dollar of housing loan reduces your remaining headroom by the full amount. Under TDSR, the same dollar competes with car loans, credit cards, and other debts for the 55% slice.
This is why many HDB upgraders choose to go straight to private property: with no MSR cap, the same income can support a much larger loan. The trade-off is the price gap — private condos typically cost more per square foot than HDB flats — and additional considerations like the 25% downpayment and ABSD if you keep your HDB.
If you're at this decision point, the HDB Upgrader Guide 2026 walks through the full sequencing including MOP rules and ABSD planning.
Worked Example: HDB Upgrader Couple
Scenario
- Combined gross income: $15,000/month (both salaried)
- Existing car loan: $800/month
- Credit card minimums: $200/month
- Looking at: A 4-room resale HDB at $750,000
Step 1 — TDSR check (55% cap on all debt)
- 55% of $15,000 = $8,250/month available for total debt
- Existing debts: $800 + $200 = $1,000
- Available for new home loan: $8,250 − $1,000 = $7,250/month
- At 4.0% stress test rate over 25 years, $7,250/month services a loan of approximately $1,373,000
Step 2 — MSR check (30% cap on housing loan)
- 30% of $15,000 = $4,500/month available for the housing loan only
- At 4.0% stress test rate over 25 years, $4,500/month services a loan of approximately $852,000
Step 3 — Bank applies the lower of the two
The TDSR ceiling allows up to $1.37M, but MSR caps the loan at $852K. The bank approves the MSR amount. With a 75% LTV maximum on HDB, the couple can target a flat up to roughly $1.13M (loan $852K + 25% downpayment $284K).
The actual flat at $750K is comfortably within reach. Required loan: $750K × 75% LTV = $562K, well below the $852K MSR ceiling.
Same couple, but private condo: If the same couple instead buys a $1.5M private condo, MSR is dropped. Only TDSR applies. The $7,250/month TDSR headroom now serves a private loan: at 4.0% over 30 years (private property allows longer tenure), $7,250/month services approximately $1,518,000. With 25% downpayment, they can target up to $2.02M of private property — almost double the HDB ceiling. This is the classic "MSR ceiling" reason HDB upgraders move private.
How to Pass Both Ratios
If you're tight on either rule (or both), the levers are the same:
- Pay down or close existing debts. Closing a $800/month car loan immediately frees up TDSR headroom and indirectly increases borrowing capacity. MSR is unaffected by this directly, but if TDSR was the binding constraint it could suddenly switch to MSR.
- Pledge eligible assets. Fixed deposits, equities, bonds, or gold pledged with the bank for a minimum of 4 years are added to recognised income. Both TDSR and MSR are calculated against the boosted figure. The pledged amount divided by 48 months gives the income uplift.
- Use a longer loan tenure. A 25-year HDB tenure is shorter than the 30-year private tenure. Stretching the tenure (where eligible) lowers the monthly repayment, lifting both ratios. Note: tenures longer than 25 years for HDB or beyond age 65 reduce LTV from 75% to 55% — the cash needed jumps.
- Show fixed (not variable) income contributions. Variable income is haircut 30% — only 70% counts. If you can demonstrate higher fixed-base salary (or use a recent year of stable bonuses by AIP), more income flows through to both ratios.
- Consider a co-borrower. Adding a working family member with stable income can lift both TDSR and MSR. Just be aware: co-borrowers may complicate ABSD and ownership counting if they own other properties — see the ABSD calculator to model this before committing.
Frequently Asked Questions
What is the difference between TDSR and MSR in Singapore?
TDSR caps your total monthly debt obligations (everything you owe) at 55% of gross income. MSR caps just the new home loan repayment at 30% of gross income. TDSR applies to every property; MSR only applies to HDB and new ECs from developers.
Does MSR apply to private property in Singapore?
No. MSR applies only to HDB flats and new Executive Condominiums bought from developers. For all private property — including condos, landed homes, and resale ECs after their MOP — only TDSR (55%) applies.
Which is stricter, TDSR or MSR?
For HDB and new EC buyers, MSR is almost always stricter in practice. Its 30% cap on housing-loan-only is more restrictive than TDSR's 55% cap on total debt, especially when the buyer has minimal other debts.
Why does the bank apply both TDSR and MSR for an HDB purchase?
MAS requires both. The bank computes both ratios and approves the lower of the two loan amounts. TDSR ensures total household debt is sustainable; MSR is a separate housing-affordability check specific to public housing.
Does MSR apply to a resale EC?
Only when it's bought new from the developer. After the 5-year Minimum Occupation Period, when the EC becomes resaleable on the open market, MSR is dropped. After 10 years, the EC is fully privatised — only TDSR applies in both cases.
What stress test rate do TDSR and MSR use in 2026?
Both use the MAS medium-term floor rate of 4.0% per year for residential property loans. This is independent of the actual mortgage rate the bank offers — it is a regulatory floor.
Can pledged assets help me pass MSR like they help with TDSR?
Yes. Pledged eligible assets (held with the bank for at least 4 years) are added back to recognised income, and both TDSR and MSR are calculated against the boosted figure.
Not sure which rule will cap your loan?
Send me your income, existing debts, and the property you're considering — I'll work out both TDSR and MSR for you and tell you the realistic loan amount and price range.
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