The Lendela Team
November 10th, 2026
Table of contents
- The MSR caps your housing repayment at 30% of gross monthly income. The TDSR caps all your monthly debt at 55%.
- Other monthly debts of up to 25% of income leave your housing repayment limit unchanged, because 55% minus 30% is 25%.
- Beyond 25%, each extra $1 of other monthly debt takes $1 off the housing repayment you can be assessed for.
- On $8,000 a month, other debt of $2,000 or less leaves the limit at $2,400. At $3,200 it falls to $1,200.
- Banks use their own assessment rates and income adjustments, so confirm your numbers with the bank and your HFE letter.
Other monthly debts of up to 25% of your gross monthly income do not reduce the housing repayment you can be assessed for on an HDB flat, because the 30% MSR cap is reached before the 55% TDSR cap is. Beyond 25%, every dollar of other monthly debt takes a dollar off the housing repayment you can be assessed for.
On a combined gross income of $8,000 a month, that threshold is $2,000 of other monthly debt. At $2,000 or less, the housing repayment limit stays at $2,400, which is 30% of income. At $3,200 of other monthly debt, it falls to $1,200, which keeps your total debt at 55% of income.
The sums are simple, but the inputs are not: banks use their own assessment rates, apply a haircut to variable income, and convert credit card balances into an assumed monthly repayment.
Use the figures here to see the shape of the limit, then confirm your own numbers with the bank and your HFE letter.
How much existing debt can you carry before it shrinks your HDB loan limit?
Up to 25% of your gross monthly income, as a rough guide. Two limits apply when a bank finances an HDB flat. The MSR caps the housing repayment alone at 30% of gross monthly income. The TDSR caps all monthly debt, the housing repayment included, at 55%.
If your other debts are small, the 30% cap is the one you meet first. Once other debts pass 25% of income (55% minus 30%), the 55% cap takes over, and every extra dollar of debt reduces the housing repayment you can be assessed for, dollar for dollar.
Gross monthly income | MSR cap (30%) | TDSR cap (55%) | Other debt at which TDSR starts to bind (25%) |
|---|---|---|---|
$5,000 | $1,500 | $2,750 | $1,250 |
$8,000 | $2,400 | $4,400 | $2,000 |
$10,000 | $3,000 | $5,500 | $2,500 |
New to the two ratios? Our guides to MSR vs TDSR and what TDSR is cover the definitions. This guide focuses on how much room your other debts leave.
What does it look like with real numbers?
Take a combined gross income of $8,000 a month. The MSR cap is $2,400 and the TDSR cap is $4,400. The table shows the highest housing repayment you can be assessed for as other monthly debt rises.
Other monthly debt | Highest housing repayment you can be assessed for | What limits it |
|---|---|---|
$0 | $2,400 | MSR (30%) |
$800 | $2,400 | MSR (30%) |
$2,000 | $2,400 | MSR (30%) |
$2,800 | $1,600 | TDSR (55%) |
$3,200 | $1,200 | TDSR (55%) |
Between $0 and $2,000 of other debt, nothing changes. Past $2,000, the limit falls with every dollar. At $3,200 it is half of what it was, and the MSR was never the problem.
These are monthly repayments, not loan amounts. How much a repayment translates to in borrowing depends on the interest rate, the tenure and the bank's assessment. Our HDB affordability calculator does that conversion.
Which debts count towards your monthly total?
Banks commonly include:
Car loans
Personal loans
Credit card balances, converted into an assumed monthly repayment
Education loans
Renovation loans
Other property loans
The credit card point is worth a second look. The amount on your statement is not the amount the bank uses, because the bank assumes a repayment on your balance. Ask your bank how it treats yours. The same applies to instalment plans: ask before assuming they sit outside the sums.
Income counts too. Variable income such as commissions and bonuses is commonly discounted by around 30%, so a month with a big bonus does not set your limit. Our TDSR guide explains how.
Does this work the same way for an HDB housing loan?
Not necessarily, so check which loan you are using. If you take an HDB housing loan, your HFE letter shows the loan amount HDB will lend you, and that is the figure to plan around. If you take a bank loan for an HDB flat, expect the bank to assess both the MSR and the TDSR.
Our HDB loan vs bank home loan guide compares the two, and the November 2026 BTO checklist explains what the HFE letter confirms.
What can you do to create room before you apply?
Three things move the numbers, and none needs guesswork:
Reduce balances that drive monthly obligations. Revolving balances first, because they carry the highest interest.
Pause new instalment commitments. Each new monthly repayment sits on the debt side of the sum and uses up headroom.
Keep income records consistent. Banks often average variable income, so steady documentation helps.
A personal loan adds a monthly repayment that counts. If you do need one, look at what that repayment would do to the sums above first. Lendela matches you with personalised offers from 70+ banks and financial institutions through one application. Compare personalised loan offers to see the monthly repayment before you decide.
Frequently asked questions
Do my existing debts reduce how much I can borrow for an HDB flat?
They can. When a bank finances an HDB flat, the MSR limits the housing repayment to 30% of gross monthly income, and the TDSR limits all monthly debt repayments to 55%. Once your other debts pass 25% of income, the TDSR becomes the tighter limit and each extra dollar of debt reduces the housing repayment you can be assessed for.
How much other debt can I have before it affects my HDB loan limit?
As a rough guide, up to 25% of your gross monthly income, because 55% minus 30% leaves 25%. On $8,000 a month that is $2,000. Banks apply their own assessment rates and income adjustments, so confirm the figure with your bank.
Does a personal loan reduce how much I can borrow for a flat?
Yes, because the monthly repayment counts as a debt obligation when you apply for a property loan. A new personal loan taken shortly before a flat purchase can therefore reduce the housing repayment you can be assessed for. Check what the repayment would do to your numbers before you take it.
Does this work the same way for an HDB housing loan?
Not necessarily. If you use an HDB housing loan, your HFE letter shows the loan amount HDB will lend you, so rely on that figure. If you use a bank loan, expect the bank to assess both the MSR and the TDSR.
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Sources: MAS TDSR framework; HDB; figures are illustrative and use the 30% MSR and 55% TDSR caps cited across Lendela's guides. Current as at 10 November 2026. Banks apply their own assessment rates and income adjustments.
The Lendela Team
Lendela is a loan-matching platform that partners with 70+ banks and financial institutions. We aim to deliver a transparent, safe, and personalised loan-matching experience, empowering borrowers with confidence to choose what truly fits. Since launching in 2018, we’ve helped hundreds of thousands of Singaporeans make smarter, more informed financial decisions through clarity and control.
