The Mortgage Servicing Ratio (MSR) caps monthly home loan repayments at 30% of gross monthly income for HDB flats and Executive Condominiums (ECs) in Singapore as of 2026. MSR runs alongside TDSR (55% total debt cap), and the lower of the two limits binds the borrower.
MSR rules
MSR applies only to HDB flats and ECs at the new-launch and resale stage. Source: MAS macroprudential framework.
The formula: Monthly Home Loan Instalment ÷ Gross Monthly Income ≤ 0.30.
Banks compute MSR using the same 4% per annum stress-test rate that TDSR uses, regardless of the actual loan rate.
For private condominiums and landed properties, MSR does not apply — only TDSR governs.
MSR vs TDSR: which binds?
| Borrower Type | TDSR (55%) | MSR (30%) | Binding cap |
|---|---|---|---|
| HDB / EC buyer, no other debts | S$4,400 | S$2,400 | MSR |
| HDB buyer with car loan S$700/mo | S$3,700 | S$2,400 | MSR |
| HDB buyer with multiple loans S$1,500/mo | S$2,900 | S$2,400 | MSR |
| HDB buyer with very high debt S$2,200/mo | S$2,200 | S$2,400 | TDSR |
For borrowers with low other debts, MSR is the binding constraint. The 30% MSR cap is more restrictive than 55% TDSR until other monthly debts exceed approximately 25% of gross income.
Worked example: BTO 4-room flat in Tengah
| Item | Amount |
|---|---|
| BTO price (Tengah, 4-room, 2026) | S$380,000 |
| HDB loan (75% LTV) | S$285,000 |
| Monthly instalment @ 4% stress / 25 yr | S$1,505 |
| MSR cap (30% of income) | S$1,505 |
| Implied minimum gross monthly income | S$5,017 |
A combined household income of approximately S$5,000 unlocks a S$380,000 BTO flat under MSR. The HDB Concessionary Loan offers 2.6% as of 2026-05 (vs the 4% stress assumption), so the actual cash outflow is lower than the stress figure.
Other affordability levers
For the cross-cutting view of all financing rules — LTV, TDSR, MSR, loan tenure — see the Singapore home loan framework.
Frequently asked questions
Does MSR apply to second HDB purchase?
You cannot own two HDB flats simultaneously. MSR governs any HDB or EC purchase — including upgrades within the HDB / EC ladder.
Does MSR apply when refinancing an HDB loan?
Refinancing is generally exempt from MSR provided the loan amount is not increased.
What rate do banks use for MSR?
A 4% per annum medium-term floor regardless of the actual loan rate — same stress-test methodology as TDSR.