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TDSR vs MSR — Compared

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Side-by-side

AspectTDSRMSR
Cap55% of gross income30% of gross income
What's includedALL monthly debts (housing, car, cards, etc.)Housing loan only
Applies toAll bank property loansHDB + EC (developer)
Considers existing debtYes — debt deducted from capNo — measured against income only
Stress-tested?Yes — at medium-term rateYes — at medium-term rate
Effective from16 Dec 2021 (was 60%)Long-standing
AuthorityMAS Notice 645MAS Notice 632 + HDB

The binding-cap rule

When MSR applies (HDB / EC), the lender computes both TDSR and MSR caps and picks the lower one. That lower cap defines the maximum monthly mortgage instalment, which drives the maximum loan.

For most HDB buyers without other major debt, MSR is binding because 30% of income is lower than the 55% TDSR cap minus typical debt.

Worked examples — same buyer, different property

Buyer: gross monthly income $10,000, existing debt $1,500/month (car + credit cards).

Scenario A — buying private condo

  • TDSR cap: 55% × $10,000 = $5,500. Less existing debt $1,500 → $4,000/month for new mortgage
  • MSR: not applicable
  • Max loan at 4% stress, 25y tenure: $4,000 × 189.45 ≈ $757,800

Scenario B — same buyer buying HDB

  • TDSR cap: $4,000/month (as above)
  • MSR cap: 30% × $10,000 = $3,000/month for new mortgage (no debt deduction)
  • Binding: MSR is lower → $3,000/month
  • Max loan at 3% stress (HDB), 25y: $3,000 × 210.85 ≈ $632,550

Same income, same debt — but the HDB framework gives a lower loan amount because MSR forces a stricter ratio. This is one reason mass-market buyers often opt for private condos (where TDSR alone applies, allowing for a higher loan-to-income).

Related guides

Frequently asked questions

What's the difference between TDSR and MSR in Singapore?▾

TDSR (Total Debt Servicing Ratio) caps your TOTAL monthly debt obligations (housing loan + car loan + credit cards + everything else) at 55% of gross monthly income. MSR (Mortgage Servicing Ratio) caps only the MORTGAGE instalment at 30% of gross monthly income. MSR applies only to HDB flats and Executive Condominiums; TDSR applies to all property loans.

Which is more restrictive — TDSR or MSR?▾

MSR is more restrictive in terms of percentage (30% vs 55%), but TDSR considers more debts (you may already be carrying $2,000 of car loan and credit card debt). For most HDB / EC buyers without significant other debt, MSR is the binding cap. For buyers with substantial existing debt, TDSR may bite first even at the higher 55%.

Does TDSR apply to HDB flats?▾

Yes — both TDSR and MSR apply to HDB flats (bought with bank loan or HDB Concessionary Loan). The bank or HDB calculates both, and the lower-allowance one is the binding cap. For ECs bought from the developer, both also apply; for resale ECs after 10 years (fully privatised), only TDSR applies.

What if I'm buying a private condo — does MSR apply?▾

No. MSR applies only to HDB and EC (from developer). Private condominium and landed property purchases are subject to TDSR only. This means a private-property buyer can use up to 55% of income on the mortgage alone (subject to other debts not crowding it out).