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TDSR & MSR in Singapore: The Real Borrowing Limit (Not Your Instalment)
Last updated: February 2026
Most buyers ask: “What instalment can I afford?”
Banks ask: “How much debt can you carry under TDSR (and sometimes MSR) using a stress-tested rate?”
This page is the practical bridge between those two questions.
Jump to What You Need
1) TDSR: The Bank’s Constraint
TDSR is a cap on total debt repayments as a proportion of your gross monthly income.
The key detail: banks don’t just use the promo rate you see today — they apply a stress-tested rate,
and they include your existing debts.
Ownership Guide framing: TDSR is a liquidity gate. Your long-run cost is still driven by interest exposure and exit friction.
2) MSR: The Extra Cap (Mostly HDB / EC)
MSR is an additional mortgage-only cap that applies mainly to HDB loans and Executive Condominiums.
If it applies to your purchase, MSR can become the tighter constraint even when TDSR looks fine.
3) Why Banks Approve Less Than You Expect
- Variable income haircut: bonuses, commissions, allowances may be discounted.
- Existing debt inclusion: credit cards, car loans, student loans, other mortgages.
- Stress rate: approvals are modelled with a higher assumed interest rate.
- Tenure and age limits: reduce maximum loan even if you can pay more monthly.
This is why “my monthly instalment looks ok” is not the same as “the bank will lend me that amount”.
4) What To Do If You’re Capped
- Reduce debts first: pay down revolving/short-term debt to free up capacity.
- Document income cleanly: stable payslips and tax assessments often matter more than claimed income.
- Increase downpayment: reduces required loan and therefore the ratio constraints.
- Choose a lower price band: avoid stretching to the maximum and losing buffer.
- Plan for interest drag: see mortgage interest exposure.
5) Practical Decision Rules
- If your plan requires “maxing out” TDSR/MSR, you are running a thin-buffer strategy.
- If a 1% rate rise breaks your cashflow, you should re-size the purchase or rebuild buffer before buying.
- TDSR/MSR approval is just the gate — the real ownership risk is the full stack: duties · reno · exit costs · CPF refund reality.
FAQ
Does MSR apply to condos?
Typically no — MSR mainly applies to HDB loans and Executive Condominiums. TDSR still applies broadly.
Should I buy at my maximum approved loan?
Usually not. The maximum approval often leaves you with thin liquidity, especially after duties, renovation, and future rate changes.
Is TDSR the same as my monthly affordability?
No. TDSR is a bank constraint using stress assumptions. Your real affordability must also include life expenses and buffer planning.