TDSR and MSR Singapore (2026): 55%, 30% and Assessment Rates

TDSR and MSR compare assessed repayments with recognised gross monthly income. The usual limits are 55% for TDSR and 30% for MSR. Passing either test says nothing about whether your remaining household budget is comfortable.

TDSR includes other debt obligations. MSR counts assessed property-loan repayments, including the proposed loan, for the applicable flat or EC purchase. Refinancing, exemptions and special cases need separate lender checks. MoneySense: bank LTV, cash and servicing limits.

Use the assessment rate, not only the promotional rate

For bank residential loans, the assessment uses the higher of the 4% medium-term floor and the applicable thereafter rate. A lender may use a higher rate. HDB assesses its loans at the higher of a 3% floor and the prevailing concessionary rate. The actual HDB concessionary rate is 2.6% for July–September 2026. Assessment rates determine borrowing capacity; the contracted rate determines the payment you actually make. HDB: September 2022 assessment-rate measures; HDB: housing loan eligibility and limits; HDB: concessionary interest rate.

Worked example: S$12,000 income and S$1,200 other debt

Assume the lender recognises the full S$12,000 as gross monthly income, and the S$1,200 captures all assessed other debt.

• TDSR allows S$12,000 × 55% = S$6,600 total monthly debt service.
• After other debt, S$6,600 − S$1,200 = S$5,400 remains for the proposed mortgage under TDSR.
• If MSR applies, the mortgage budget is S$12,000 × 30% = S$3,600.

For an HDB flat bought with a bank loan, S$3,600 is the tighter servicing limit in this example. With a 25-year loan assessed at 4%, that supports roughly S$682,000, before the separate LTV ceiling. An HDB loan uses its own assessment rate and eligibility rules.

Turning a monthly limit into a loan amount

For monthly budget B, monthly assessment rate r, and n payments, the supported principal is B × [1 − (1 + r)⁻ⁿ] ÷ r. At zero interest, it is B × n. The property affordability calculator applies this calculation and then compares it with LTV.

The final loan cannot simply be the income-based result. A valuation shortfall, existing housing loans, age, tenure or remaining lease can restrict LTV. If a smaller loan creates a larger downpayment than your cash and CPF can fund, reduce the price or revisit the plan.

Inputs to confirm with the lender

Use recognised gross income rather than take-home pay for these ratios. Variable income, bonuses, self-employment earnings, joint borrowers and existing debt can receive specific underwriting treatment. Obtain the lender’s recognised-income and assessed-debt figures rather than assuming the largest income number on a payslip is fully usable.

Then run a separate household budget using take-home income. Childcare, parent support, property upkeep and savings goals affect affordability even when they are not loan instalments in a servicing ratio. Test a weaker-income month and a higher payment rate before treating the loan ceiling as a spending target.

Last updated: 14 Sep 2026 · Editorial Policy · Advertising Disclosure · Corrections