MSR vs. TDSR in Singapore: how they affect your home loan

If you're planning to buy a property in Singapore, you’ll come across two key terms:

• MSR (Mortgage Servicing Ratio) and

• TDSR (Total Debt Servicing Ratio)

These rules directly affect how much you can borrow – and how much you can afford.

What is MSR?

MSR applies mainly to HDB flats.

It limits your monthly housing loan repayment to:

30% of your gross monthly income

Example

• Income: $5,000

• Max repayment: ~$1,500/month

This ensures your housing loan remains manageable.

What is TDSR?

TDSR applies to all property loans.

It limits your total debt obligations to:

55% of your gross monthly income

This includes:

• Housing loan

• Credit cards

• Personal loans

• Car loans

Key difference: MSR vs. TDSR

Why both matter for affordability

Even if MSR is satisfied:

TDSR can still reduce your loan amount

Example:

• High credit card debt

• Existing personal loans

→ reduces how much you can borrow

How this affects your HDB affordability

Your loan is effectively capped by:

• MSR (primary constraint)

• TDSR (secondary constraint)

This is why two buyers with the same income can get different loan amounts.

How to estimate your affordability

Instead of guessing, use a calculator that accounts for:

• MSR

• TDSR

• loan tenure

• interest rates

Use this HDB affordability calculator in Singapore.

What to do if your loan amount is lower than expected

You can improve your borrowing capacity by:

• reducing existing debts

• extending loan tenure (within limits)

• improving credit profile

Final thoughts

MSR and TDSR are designed to ensure borrowers don’t overextend financially.

Understanding how they work helps you make smarter decisions – and avoid surprises during loan approval.