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The Total Debt Servicing Ratio (TDSR) is a critical financial rule that determines how much property loan you can borrow in Singapore. Introduced by MAS (Monetary Authority of Singapore) in June 2013, TDSR limits your total monthly debt repayments — including your new mortgage — to 55% of your gross monthly income. Understanding TDSR is essential before committing to any Singapore property purchase in 2026.
What Is TDSR in Singapore?
Total Debt Servicing Ratio (TDSR) is a MAS-mandated rule that all Singapore financial institutions must apply when assessing property loan applications. It ensures that borrowers can sustainably service their debts even if interest rates rise.
TDSR Formula: Total Monthly Debt Obligations ÷ Gross Monthly Income ≤ 55%
Total monthly debt obligations include: property mortgage (the new loan), car loans, personal loans, credit card minimum payments and any other outstanding instalment loans.
TDSR Limit Singapore 2026 — The 55% Rule
| Gross Monthly Income | TDSR Limit (55%) | Existing Debts ($1,000/mth) | Max Mortgage Payment |
|---|---|---|---|
| $6,000 | $3,300 | $1,000 | $2,300 |
| $8,000 | $4,400 | $1,000 | $3,400 |
| $10,000 | $5,500 | $1,500 | $4,000 |
| $15,000 | $8,250 | $2,000 | $6,250 |
| $20,000 | $11,000 | $2,000 | $9,000 |
All figures are illustrative. Actual loan eligibility depends on the bank’s assessment of income type, creditworthiness and prevailing interest rates. Subject to change.
TDSR vs MSR — What’s the Difference for Singapore Property Buyers?
- TDSR (55%): Applies to ALL property loans including private condos, executive condominiums and commercial property. All your debt repayments combined cannot exceed 55% of income.
- MSR (30%): Applies ONLY to HDB flat purchases and Executive Condo (EC) purchases. The specific mortgage loan for the HDB/EC cannot exceed 30% of income. If you are buying a private condo, MSR does NOT apply — only TDSR.
This means an HDB upgrader buying a new launch condo is only subject to TDSR (55%), not the more restrictive MSR (30%). This often allows upgraders to qualify for a larger loan for a private property compared to what they could borrow for a subsidised HDB purchase. See our HDB upgrader guide Singapore for the full journey.
Key Takeaways for Singapore Property Buyers 2026
- First-time buyers: With no existing debts, you maximise your TDSR headroom. Focus on timing to maximise your loan quantum before taking on additional credit commitments.
- HDB upgraders (second property): Your existing HDB loan is factored into TDSR. Plan the sale of your HDB to reduce your debt obligations. Note: ABSD of 20% also applies for SCs buying a second property — see our ABSD Singapore 2026 guide.
- Investors (second property): LTV (Loan-to-Value) reduces to 45% for a second residential property, meaning a 55% down payment is required. This significantly changes your capital requirements regardless of TDSR.
- Self-employed buyers: Income is averaged over 2 years. Banks may apply additional haircuts. Having strong CPF contributions and bank statements strengthens your application.
What Is the LTV for a Second Property in Singapore?
Loan-to-Value (LTV) limits are separate from TDSR and equally important for second property buyers:
- First residential property: LTV up to 75% (25% minimum down payment, of which 5% must be cash)
- Second residential property: LTV up to 45% (55% minimum down payment, of which 25% must be cash)
- Third and subsequent: LTV up to 35% (65% minimum down payment, of which 25% must be cash)
This means buying a $1.5M second property as a SC requires at least $825,000 cash down payment (55%), plus 20% ABSD ($300,000) = total upfront cash requirement of approximately $1,125,000 before loan approval. Careful financial planning with a licensed property consultant is essential.
Should You Buy a New Condo in Singapore 2026?
If your TDSR and LTV analysis shows you can comfortably service a property loan, Singapore new launch condos remain a strong medium-to-long-term asset class. Key factors: Singapore’s limited land supply, consistent GDP growth, strong rule of law, and AAA-rated economy underpin property values. Consult Alvin Tan (CEA R072324C) for a personalised affordability analysis. All property decisions should be made with full awareness of risks; past performance is not indicative of future results.
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CEA Reg. No. R072324C · ERA Realty Network Pte Ltd · Alvin Tan
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