Property
What is Total Debt Servicing Ratio (TDSR)?
A borrowing limit set by MAS: when you take a property loan, all of your monthly debt repayments combined — home loan, car loan, credit cards and so on — cannot exceed 55% of your gross monthly income.
How it’s calculated
When you take a property loan, the bank adds up all your monthly debt repayments — the new home loan, plus car loans, personal and student loans, credit-card minimums and any guarantor obligations — and checks that the total doesn’t exceed 55% of your gross monthly income. To be conservative, the new home loan is stress-tested at a medium-term interest-rate floor of 4% a year for residential property, and variable or rental income is discounted by 30%.
Why it matters
TDSR effectively caps how large a home loan you can take: the more existing debt you carry, the smaller the housing loan you’ll qualify for. It applies to bank loans for both HDB flats and private property. Clearing other debts, or extending other loan tenures, before applying can free up room under the 55% limit.