Singapore’s TDSR caps all monthly debt repayments at 55 % of gross income; MSR caps the housing loan alone at 30 % for HDB flats and ECs. Banks stress-test at 4 % per annum, not the promo rate. From your maximum allowed repayment, back-solve to a maximum loan, then divide by the LTV ratio to find your maximum property price (as of 2026-06).
Most buyers start their property search with a wish list — district, bedrooms, condo amenities — then discover at the bank that the price tag they had in mind is 30 % beyond what they can borrow. The reason is not the deposit; it is the income-side gate that Singapore’s mortgage framework imposes before any loan is approved. Two rules control the size of that gate: the Total Debt Servicing Ratio (TDSR), mandated by the Monetary Authority of Singapore, and the Mortgage Servicing Ratio (MSR), enforced for HDB flat and EC purchases. This guide explains the arithmetic behind both limits, walks through a worked example that derives a maximum property budget from a stated income and downpayment, and maps out the levers you can pull to raise your ceiling. Use the TDSR calculator, the affordability calculator, and the mortgage calculator alongside this guide to run your own numbers in real time.
Why two ratios exist — and which one bites first
TDSR was introduced by MAS in June 2013 and tightened to its current 55 % ceiling in September 2022. Its purpose is to ensure that borrowers across all property types — private condo, landed, HDB resale, EC, and commercial — cannot commit more than just over half their gross income to total debt servicing, no matter how attractive the interest rate environment looks at the time of purchase (as of 2026-06).
MSR predates TDSR, introduced in January 2013 specifically for HDB flats, and extended to ECs bought directly from developers when the HDB grant framework changed. At 30 % of gross monthly income, it is a tighter constraint applied only to the housing component — all other debts are irrelevant to the MSR test itself. When you are buying an HDB flat or a new EC, you must pass both tests simultaneously. In practice, the MSR nearly always bites first: 30 % housing-only is a harder ceiling than 55 % all-debt for the mortgage portion, unless you carry very large non-housing debts.
For private condo and landed buyers, only TDSR applies. Your mortgage plus every other monthly debt obligation — car loans, personal loans, credit card minimums, renovation loans, any co-signed guarantor obligations — must not exceed 55 % of your gross monthly income when stress-tested at the bank’s floor rate. The private condo price heatmap gives a sense of what price ranges you are navigating across districts once you know your budget ceiling.
The stress test: why banks use 4 %, not your promo rate
No bank in Singapore will compute your TDSR using the teaser rate printed on a mortgage brochure. MAS requires every lender to apply a medium-term interest rate floor — currently 4 % per annum for residential property loans (as of 2026-06), though individual banks may apply an internal floor of 4.5 % or higher. The floor rate is a regulatory buffer: if rates rise significantly from today’s SORA-linked levels, you must still be able to service the loan. Banks apply the higher of the floor rate or the actual contracted rate when computing the monthly instalment for TDSR purposes.
This creates a counterintuitive situation: even if your actual contracted rate is 2.8 %, the bank computes your TDSR repayment as if you were paying 4 %. The difference is material — a $1.2 M loan at 4 % over 25 years costs roughly $6,340 per month; at 2.8 %, it costs about $5,520. The TDSR test uses the higher figure, which reduces your effective borrowing capacity.
How banks count your income
Gross monthly income under the TDSR framework is not simply your payslip total. MAS guidelines distinguish between income types, and banks apply haircuts to those deemed less stable (as of 2026-06):
- Fixed salary (employee): Counted in full. You will need 3 months’ payslips and the most recent Notice of Assessment.
- Commissions and bonuses: Variable components are typically haircut by 30 %, meaning only 70 % is counted. If your base salary is $6,000 and your average monthly commission is $4,000, the bank counts $6,000 + $2,800 = $8,800.
- Self-employed or freelance income: Averaged over 2 years (using NOAs) and haircut by 30 %.
- Rental income: Typically accepted with supporting tenancy agreements, haircut by 30 % by most lenders.
- CPF contributions: The employer’s CPF contribution on top of your gross cash salary is generally not added — TDSR uses your contractual gross cash salary, not total employment cost.
The income haircut on variable sources explains why many high-earning commission-based professionals find their borrowing capacity lower than their lifestyle implies. It is also why the affordability calculator asks you to distinguish fixed from variable income before computing a ceiling.
Before you fall in love with a property, Singapore's mortgage framework will impose two hard mathematical ceilings on how much you can borrow. The Total Debt Servicing Ratio (TDSR) and the Mortgage Servicing Ratio (MSR) are not suggestions — they are MAS-mandated limits that every bank must apply when assessing your loan. Get them wrong in your planning and you may find yourself short by hundreds of thousands of dollars on completion day.
This guide explains exactly how TDSR and MSR work, shows you the formulas, walks through two detailed worked examples (a single buyer and a couple with an existing car loan), and gives you six practical strategies to maximise your borrowing capacity within the rules. All figures reflect 2026 MAS guidelines.
For the complementary picture of how your age affects loan tenure and LTV, see our LTV, CPF Limits & Age Restrictions guide. For mortgage structure choices between fixed and floating rates, see Fixed vs Floating Rate Mortgages. To run your own numbers immediately, use our TDSR Calculator.
Overview: Two Ratios, One Goal
The MAS introduced TDSR in 2013 and tightened it to its current level in 2022. The policy goal is straightforward: ensure Singaporeans do not overextend themselves on debt relative to their income. Unlike LTV ratios (which constrain the loan quantum against the property value), TDSR and MSR constrain it against your income — making them the income-side gate to any property purchase.
- TDSR applies to all property types: private condominiums, landed property, HDB flats, executive condominiums, and commercial property. It caps your total monthly debt obligations at 55% of gross monthly income.
- MSR applies only to HDB flats and Executive Condominiums (ECs) — it does not apply to private condominiums or landed property. It imposes an additional, tighter cap: your housing loan instalment alone cannot exceed 30% of gross monthly income.
In practice, for HDB and EC buyers, the MSR is usually the binding constraint — 30% is a tighter ceiling than the 55% TDSR for housing debt alone, and it leaves very little room for other debts. For private property buyers, TDSR is the only hurdle, but it must account for every debt obligation you carry.
TDSR Explained: The Formula
TDSR measures the share of your gross monthly income consumed by all debt repayments — your new property loan plus every other outstanding debt you hold. The formula is:
TDSR = (Total monthly debt obligations ÷ Gross monthly income) × 100%
Maximum allowed: 55%
What counts as "total monthly debt obligations"?
- The proposed new property loan instalment (stress-tested — see below)
- Any existing property loan instalments
- Car loan or hire purchase repayments
- Student loan repayments
- Credit card minimum payments (banks typically use 5% of the outstanding balance per month)
- Personal loan repayments
- Any other formal debt obligations
What counts as "gross monthly income"?
This is where banks apply their own interpretations within MAS guidelines. The short answer: they count less than you might expect. The section on income calculation below covers all income types in detail.
The Stress Test Rate
Banks do not calculate your instalment using your actual mortgage rate. They apply a stress test rate — a deliberately higher rate — to ensure you can still service your debt if interest rates rise. The 2026 rule is:
With current SORA-linked mortgage rates at roughly 3.0–3.5% all-in, the stress test typically floors at 4.0% p.a. for most borrowers in 2026.
This means your TDSR headroom is calculated on the instalment at 4.0%, not at your actual rate of (say) 3.2%. The difference is meaningful: on a S$1,000,000 loan over 25 years, the monthly instalment at 3.2% is approximately S$4,840, while at 4.0% it rises to approximately S$5,278 — a difference of S$438/month that directly reduces your apparent affordability.
MSR Explained: HDB and EC Buyers Only
The Mortgage Servicing Ratio applies exclusively to loans for HDB flats and Executive Condominiums. It imposes a separate, tighter ceiling specifically on the housing loan component of your debt:
MSR = (Monthly housing loan instalment ÷ Gross monthly income) × 100%
Maximum allowed: 30%
The MSR stress test uses the same 4.0% floor as TDSR. Unlike TDSR, MSR only counts the housing loan — not car loans, credit cards, or other debts. But precisely because it is capped at 30%, it severely limits the maximum affordable loan for HDB and EC buyers.
Why MSR Is Usually the Binding Constraint for HDB/EC
Consider a buyer with S$8,000 gross monthly income and a car loan of S$1,000/month. Their TDSR headroom for all debt is S$8,000 × 55% = S$4,400. After the car loan, they have S$3,400 left for their housing loan — which corresponds to a TDSR-compliant housing payment of S$3,400. But MSR caps their housing payment at S$8,000 × 30% = S$2,400. MSR wins: the housing loan instalment is limited to S$2,400, not S$3,400.
This is the typical pattern: for HDB and EC buyers with any other debts, MSR bites first and TDSR rarely becomes the operative constraint.
How Banks Count Your Income
Banks do not simply accept the gross salary figure on your payslip. They apply haircuts to variable and non-employment income to account for uncertainty. The table below summarises how different income types are treated for TDSR purposes in 2026:
| Income Type | How Banks Count It | Notes |
|---|---|---|
| Fixed monthly salary | 100% of gross salary | Must be evidenced by payslips and Notice of Assessment (NOA) |
| Commission / variable pay | Typically 70% of 12-month average | Banks average over the most recent 12 months, then apply the 70% haircut |
| Annual bonus | Typically 70% of average, divided by 12 | Some banks require 2-year average; inconsistency across lenders |
| Self-employment / business income | 70% of average net profit (typically 2 years of NOA) | NOA required; some banks require certified accounts |
| Rental income | 70–80% of gross rent | Evidenced by tenancy agreement; some banks require 6 months of bank statements showing receipt |
| CPF contributions (employer + employee) | Counted as income for TDSR purposes | Not counted for TDSR purposes | Banks use your contractual gross cash salary; the employer's CPF contribution on top of it is generally not added |
| Overseas income | Varies; typically 70% with additional haircut for currency risk | Must be converted to SGD; some banks apply a further 10–20% forex haircut |
| Investment / dividend income | Generally not counted unless consistent over 2+ years | Passive income is treated very conservatively; confirm with your bank |
Worked Example 1: Single Buyer, S$10,000 Income, No Other Debts
Meet Wei Ling. She is a 32-year-old Singapore Citizen earning S$10,000 gross per month as a salaried employee. She has no car loan, no student loan, and no credit card balances. She wants to buy a private condominium — her first property. What is her maximum affordable property price?
Step 1: Determine TDSR headroom
TDSR limit: S$10,000 × 55% = S$5,500/month available for all debt obligations. Since she has no other debts, her entire TDSR headroom is available for the mortgage instalment.
Step 2: Maximum stress-tested instalment
Maximum monthly instalment (stress-tested): S$5,500
Step 3: Back-calculate maximum loan quantum
Using the stress test rate of 4.0% per annum over 30 years (she is 32, so 30 years ends at 62 — within the age-65 boundary, full LTV applies), the maximum loan quantum that produces a S$5,500 monthly instalment is approximately:
Maximum loan quantum ≈ S$1,150,000
(At 4.0% over 30 years, S$1,150,000 produces a monthly instalment of approximately S$5,492 — just within the S$5,500 TDSR ceiling.)
Step 4: Back-calculate maximum property price
With a first-property LTV of 75%, the loan represents 75% of the purchase price:
Maximum property price = S$1,150,000 ÷ 75% = S$1,533,000
| Item | Amount |
|---|---|
| Gross monthly income | S$10,000 |
| TDSR limit (55%) | S$5,500/month |
| Existing monthly debts | S$0 |
| Available for housing instalment (stress-tested) | S$5,500/month |
| Maximum loan quantum (4.0%, 30 years) | S$1,150,000 |
| Maximum property price (75% LTV) | S$1,533,000 |
| Minimum cash downpayment (5%) | S$76,650 |
| CPF OA for remaining downpayment (up to 20%) | Up to S$306,600 |
Use our TDSR Calculator and Mortgage Calculator to model your own scenario in detail.
Worked Example 2: Couple with Car Loan, S$18,000 Combined Income
Now consider Raj and Mei Lin, a married couple. Raj earns S$11,000/month (fixed salary) and Mei Lin earns S$7,000/month. They have a joint car loan with a remaining monthly instalment of S$800/month. They want to buy a private condominium as their first joint property.
Step 1: Combine income and apply TDSR
Combined gross monthly income: S$11,000 + S$7,000 = S$18,000
TDSR limit: S$18,000 × 55% = S$9,900/month total debt capacity
Step 2: Subtract existing debts
Car loan: S$800/month
Remaining TDSR headroom for housing: S$9,900 − S$800 = S$9,100/month
Step 3: Maximum loan quantum
Maximum stress-tested instalment for the mortgage: S$9,100/month
At 4.0% over 30 years (Raj is 35, Mei Lin is 33 — weighted average age ≈ 34, 30-year tenure ends at age 64, within the age-65 boundary), the maximum loan quantum is approximately:
Maximum loan quantum ≈ S$1,905,000
(At 4.0% over 30 years, S$1,905,000 produces approximately S$9,096/month.)
Step 4: Maximum property price
Maximum property price = S$1,905,000 ÷ 75% = S$2,540,000
| Item | Amount |
|---|---|
| Combined gross monthly income | S$18,000 |
| TDSR limit (55%) | S$9,900/month |
| Car loan instalment | −S$800/month |
| Available for housing instalment (stress-tested) | S$9,100/month |
| Maximum loan quantum (4.0%, 30 years) | S$1,905,000 |
| Maximum property price (75% LTV) | S$2,540,000 |
| Minimum cash downpayment (5%) | S$127,000 |
6 Strategies to Maximise Your Borrowing Capacity
1. Clear High-Cost Debts Before Applying
Every S$100/month in existing debt repayments reduces your TDSR-eligible mortgage instalment by S$100 — which translates to roughly S$21,000 less in loan quantum (at 4.0% stress rate over 30 years). If you are carrying a personal loan, car loan nearing its end, or significant credit card balances, pay them down before your mortgage application. The arithmetic strongly rewards debt clearance before purchase.
2. Time Your Application Around Variable Income
Banks count commission and bonus income at 70% of a 12-month average. If your variable income was unusually low in the past 12 months, waiting for a stronger period before applying can meaningfully increase your counted income. Conversely, if you know your next commission cycle peaks in March, apply in April — ensuring that cycle is fully reflected in the averaging window.
3. Include Rental Income Properly
If you own another property that generates rental income, make sure you declare it and provide a current tenancy agreement supported by bank statements showing rent receipts. Banks will count 70–80% of gross rent toward your income, which can add S$1,400–S$2,000/month or more to your counted income depending on your rental quantum — directly expanding your TDSR headroom.
4. Add a Co-Borrower with Income
Adding a co-borrower (spouse, sibling, parent, or adult child) pools incomes for TDSR purposes. A co-borrower earning S$5,000/month adds S$2,750/month to your TDSR headroom (55% × S$5,000), which supports roughly S$574,000 in additional loan quantum. The co-borrower's debts are also included, so the net benefit depends on how clean their debt profile is.
5. Reduce Credit Card Minimum Payment Exposure
Many buyers overlook that banks count 5% of all credit card outstanding balances as a monthly obligation. A combined credit card balance of S$30,000 adds S$1,500/month to your counted debts — reducing your housing TDSR headroom by S$1,500/month and your maximum loan by approximately S$314,000. Pay down balances, not just instalments, before applying.
6. Shop Across Banks for the Highest Stress-Test Tolerance
While MAS sets the 4.0% stress test floor, some banks apply the floor more rigidly than others for borderline cases, and the treatment of variable income and employer CPF can differ by institution. Getting in-principle approvals from two or three banks before committing to an OTP gives you real data on your maximum loan quantum across lenders. The variance can be S$50,000–S$100,000 or more on a S$1–2 million loan. See our mortgage guide for tips on comparing bank offers.
Common Mistakes to Avoid
Frequently Asked Questions
Does MSR apply to Executive Condominiums bought on the resale market?
Yes — but only during the HDB loan-qualifying period. ECs are subject to MSR during the initial purchase from the developer and until the Minimum Occupation Period (MOP) of 5 years is completed. Once the MOP is satisfied and an EC is sold on the open market as a fully privatised property (after 10 years), MSR no longer applies and only TDSR governs subsequent buyers. If you are buying a recently MOP-ed EC on the resale market, confirm with the developer or HDB whether MSR still applies to your specific unit's timeline.
My income includes CPF contributions — do I add the employer CPF to my gross income?
No. TDSR uses your contractual gross cash salary; the employer's CPF contribution is generally not added on top of it. For an employee aged 35 or below earning S$7,400/month (at the OW ceiling), the employer CPF contribution is 17% of S$7,400 = S$1,258. Total gross for TDSR is therefore approximately S$8,658 — not just S$7,400. This can add S$693/month to your TDSR ceiling (S$1,258 × 55%), supporting roughly S$145,000 more in loan quantum. Always confirm how a specific bank treats employer CPF; most include it, but methodologies can vary.
If I earn mostly commission, how do banks calculate my TDSR income?
Banks average your commission income over the most recent 12 months (using payslips and the prior year's Notice of Assessment) and then apply a 70% haircut to the average. So if your average monthly commission over 12 months was S$8,000, the bank counts S$8,000 × 70% = S$5,600/month as your income for TDSR. Some banks are stricter and require a 24-month average or a consistent track record of commissions across both years. If your income is predominantly commission-based, getting an in-principle approval from your bank before signing an OTP is essential — you need to know what income figure they will accept.
Can I use rental income from my current property to boost my TDSR for a new purchase?
Yes, provided you can document it. You will need a valid tenancy agreement and typically 3–6 months of bank statements showing rent deposits. Banks count 70–80% of the gross monthly rental. However, the outstanding loan on the rented property also counts as a debt obligation in your TDSR, and any second property IRAS ABSD ratesABSD must still be paid. Run the full TDSR calculation including both the rental income boost and the existing property loan obligation before relying on this strategy.
How does the stress test rate work if I take a fixed-rate mortgage?
The stress test applies regardless of whether your mortgage is fixed or floating. Even if you lock in a fixed rate of 2.8% for the first 3 years, the bank still stress-tests your TDSR at 4.0% (or actual rate + 0.5%, whichever is higher). The rationale is that fixed rates are temporary — after the fixed period ends, you re-price at prevailing rates, which could be higher. The stress test ensures you can service the debt even after the fixed period expires. In 2026, with most fixed rates between 2.8–3.3%, the stress test floors at 4.0% for virtually all borrowers.
My partner and I plan to buy together. Do both our debts count in TDSR?
Yes. When co-borrowers apply jointly, the bank aggregates all income from all co-borrowers and also aggregates all debt obligations from all co-borrowers. If your partner has a personal loan of S$500/month and a car loan of S$900/month, those S$1,400/month of obligations are included in the TDSR calculation alongside yours. The net benefit of adding a co-borrower is the income uplift minus the debt drag. It is always worth modelling both the solo and joint scenarios before deciding on the borrowing structure, especially if one partner carries significant existing debts.
Back-solving from income to maximum property price — the full arithmetic
Most guides present TDSR as a compliance test applied after you have chosen a property. The more useful framing runs in reverse: given your income, debts, and downpayment, what is the maximum property price you can actually target? The four-step derivation below is exactly what a bank’s credit officer does, and replicating it yourself — with the TDSR calculator — before you start viewing showflats removes the risk of a late-stage financing shortfall.
The four-step derivation:
Step 1 — Gross monthly income × applicable ratio = maximum total monthly debt obligations. Under TDSR: income × 0.55. Under MSR (HDB/EC only): income × 0.30 for the housing component alone.
Step 2 — Subtract existing monthly debts. Every existing repayment obligation reduces the headroom available to the new mortgage. Car loan instalments, credit card minimum payments, personal loan repayments, student loans, any other property loan repayments — all are subtracted from Step 1’s result.
Step 3 — The remaining headroom is your maximum stress-tested monthly instalment. Use a mortgage amortisation formula at the stress rate (4 % p.a.) over your intended tenure to back-calculate the maximum loan principal this instalment supports. This is your maximum loan quantum.
Step 4 — Divide by the LTV ratio to find the maximum property price. If LTV is 75 % (first residential property, loan > $750K), maximum price = max loan ÷ 0.75. Your downpayment (cash + CPF) must cover the remaining 25 %.
Worked example: S$12,000 income, car loan, buying a private condo (as of 2026-06)
Scenario: A 34-year-old buyer earning S$12,000 gross per month (full fixed salary), carrying a car loan with S$1,200/month remaining, and holding S$200,000 in cash and CPF for the downpayment. No other debts. Intends to take a 25-year loan on a private condo (first property, standard 75 % LTV).
Step 1 — TDSR ceiling: S$12,000 × 55 % = S$6,600/month total allowable debt obligations.
Step 2 — Subtract car loan: S$6,600 − S$1,200 = S$5,400/month available for the mortgage instalment.
Step 3 — Back-calculate maximum loan at 4 % stressed over 25 years. Using the standard annuity formula, a monthly payment of S$5,400 at 4 % p.a. (0.3333 % per month) over 300 months supports a loan of approximately S$1,016,000. (Precise figure: the mortgage calculator returns S$1,015,872 for these inputs.)
Step 4 — Maximum property price at 75 % LTV: S$1,016,000 ÷ 0.75 = S$1,354,667. The downpayment required is 25 % = S$338,667. With S$200,000 available, this buyer is S$138,667 short of the downpayment needed to reach the TDSR-derived ceiling. The practical price cap — constrained by the available downpayment — is S$200,000 ÷ 0.25 = S$800,000, with a loan of S$600,000 well within TDSR limits.
This illustrates a critical planning insight: for many buyers, the downpayment constraint is tighter than the TDSR ceiling, especially in the sub-$2 M price range. The two constraints must be evaluated together, not in isolation. Use the affordability calculator to compute both simultaneously and identify which is binding for your specific numbers.
Same scenario for an HDB resale flat
Suppose the same buyer targets a resale HDB flat instead. MSR now applies alongside TDSR, capping the mortgage instalment at S$12,000 × 30 % = S$3,600/month. At 2.6 % p.a. (HDB loan rate; HDB loans are not stress-tested at 4 %, per HDB’s loan eligibility rules) over 25 years, S$3,600/month supports a loan of approximately S$756,000. At 80 % LTV (HDB loan, first flat), maximum flat price = S$756,000 ÷ 0.80 = S$945,000 — subject to the flat’s valuation and any HDB eligibility cap. Using a bank loan for HDB at 75 % LTV and 4 % stress rate, S$3,600/month supports roughly S$677,000 loan, implying a max price of S$903,000. The MSR constraint is now binding ahead of TDSR in both scenarios. Districts like District 19 and District 23 have active HDB resale markets within these ranges.
What reduces your borrowing capacity — and by how much
Every S$1 of monthly debt obligation cuts your maximum loan by approximately S$188 (at 4 % over 25 years). The table below illustrates the impact of common existing debts on the maximum loan and property price for a buyer with S$12,000 gross monthly income (private condo, 75 % LTV, no other debts) (as of 2026-06):
| Existing monthly obligation | TDSR headroom remaining | Max loan (approx.) | Max property price (approx.) |
|---|---|---|---|
| None | S$6,600/mo | S$1,242,000 | S$1,656,000 |
| Car loan S$1,200/mo | S$5,400/mo | S$1,016,000 | S$1,355,000 |
| Car loan S$1,200 + credit card S$500/mo | S$4,900/mo | S$922,000 | S$1,229,000 |
| Car loan S$1,200 + personal loan S$800/mo | S$4,600/mo | S$866,000 | S$1,155,000 |
A single car loan reduces the property price ceiling by roughly S$300,000 for a S$12,000/month income earner. This is why financial planners consistently advise clearing or avoiding car loans before applying for a mortgage, particularly in the S$1 M–S$1.5 M property segment where the margin matters most.
Step by step: compute your own affordable property ceiling
- Calculate your qualifying gross monthly income. Sum your fixed salary and apply a 30 % haircut to any variable components (commissions, bonuses, freelance fees, rental income). Enter the result in the affordability calculator. If you have a co-borrower, combine both qualifying incomes.
- List every existing monthly debt obligation. Pull your car loan statement, personal loan schedule, and credit card statements. For credit cards, use 3.5–5 % of the outstanding balance as the monthly count (banks vary — 5 % is conservative and safer to plan around). Sum the total.
- Apply the correct ratio to find your monthly mortgage headroom. TDSR: qualifying income × 0.55, minus existing debts. If buying HDB or EC: the lower of (qualifying income × 0.30) and the TDSR result is your ceiling.
- Back-calculate your maximum loan at 4 % stressed over your intended tenure. Use the mortgage calculator — set the rate to 4 % and the monthly repayment to the headroom from Step 3. The loan amount that produces this repayment is your maximum loan quantum. Note: tenure is capped at 65 minus your age (bank loans) or 75 minus your age (HDB loans), so factor in your age.
- Divide the maximum loan by your LTV ratio to get your maximum property price. First residential property: 75 % LTV (bank loan) or 80 % (HDB loan for flats). Second property: 45 % LTV. Maximum price = max loan ÷ LTV.
- Check the downpayment constraint. Required downpayment = property price × (1 − LTV). If this exceeds your available cash plus CPF Ordinary Account balance, the downpayment is your binding constraint, not TDSR. Your practical price ceiling is available downpayment ÷ (1 − LTV). Use the TDSR calculator to verify both constraints simultaneously.
- Run three scenarios: clear car loan, add co-borrower, extend tenure. Before committing to your current ceiling, model these levers: (a) eliminating the car loan entirely — what does this add to the max property price? (b) including a co-borrower with income — combined qualifying income typically adds 40–60 % to borrowing capacity for a dual-income couple. (c) extending tenure by 5 years — reduces monthly payment, increases max loan, but note that total interest paid rises significantly.
- Apply a 10 % safety buffer and set your search ceiling. Your maximum TDSR-derived price is a regulatory ceiling, not a recommended target. Budget for maintenance fees, property tax, renovation costs, and potential rate rises. A practical search ceiling is 85–90 % of the TDSR-derived maximum. Consult the total cost of ownership calculator to quantify the full 5-year cost before committing to a price range.
Frequently asked questions
Does CPF OA balance count toward the downpayment for TDSR purposes?
CPF Ordinary Account savings can be used for the downpayment and for monthly mortgage repayments on eligible properties, but CPF contributions are not added to your gross monthly income for TDSR computation. TDSR uses your contractual gross cash salary (and haircut variable income) — not the employer CPF contribution. Your CPF OA balance is relevant to the downpayment constraint (what you can put down), not to the TDSR income-side calculation. Check the CPF Board’s home ownership guide for withdrawal limits and valuation rules.
If my spouse is added as a co-borrower, does their income fully count toward TDSR?
Yes — adding a co-borrower combines both borrowers’ qualifying gross monthly incomes for the TDSR calculation. Their existing debts are also combined, so the net effect depends on their income-to-debt profile. For a couple where Borrower A earns S$10,000 with a S$1,000 car loan and Borrower B earns S$8,000 with no debts, the combined qualifying income is S$18,000 and the combined existing obligations are S$1,000, leaving S$18,000 × 55 % − S$1,000 = S$8,900/month for the new mortgage. This is substantially more than either borrower could achieve alone. The co-borrower must be acceptable to the bank and will have their credit history assessed independently (as of 2026-06).
How does TDSR work if I am self-employed or have irregular income?
Self-employed buyers must provide two years of Notices of Assessment. Banks average the declared net income over 24 months and then apply a 30 % haircut, so only 70 % of the 2-year average counts as qualifying income. If your NOA income fluctuated sharply — for example, a strong 2024 followed by a weaker 2025 — the average will reflect both years equally, regardless of your current trajectory. Some banks accept a 12-month average if the business was incorporated within 2 years, but this varies by lender. It is worth shopping across 2–3 banks before assuming one bank’s assessment represents your ceiling, as income documentation standards differ at the margin (as of 2026-06).
What happens to TDSR if I have an existing property loan?
The monthly instalment on any existing property loan (or its outstanding obligation) counts as part of your total monthly debt obligations under TDSR, reducing the headroom available for the new mortgage. Additionally, from the LTV side, purchasing a second residential property attracts a 45 % LTV cap under MAS rules (as of 2026-06), meaning the loan can only cover 45 % of the lower of purchase price or valuation — the downpayment required is 55 %. The combination of reduced TDSR headroom and a tighter LTV is why upgrading from a first property to a second while the first loan is outstanding is significantly more constrained than a first-time purchase. The TDSR calculator lets you model multi-property scenarios by entering the existing loan repayment as an existing obligation.
Can I use rental income from an investment property to boost my TDSR qualifying income?
Rental income from an existing tenancy can generally be included as qualifying income for TDSR purposes, subject to supporting documentation — typically a stamped tenancy agreement and evidence of rent receipt (bank statements showing deposits). Most Singapore banks apply a 30 % haircut, so only 70 % of the gross rental amount is counted. The investment property’s outstanding mortgage repayment must simultaneously be declared as an existing debt obligation. If the rental income (haircut) minus the investment mortgage repayment produces a net positive contribution to your TDSR position, it helps; if the investment property is negatively geared, it reduces your capacity. Verify the specific documentation requirements with your preferred bank before relying on rental income as a qualifying income source (as of 2026-06).