Guide · Singapore
MSR vs TDSR, explained
MSR and TDSR are the two ratios Singapore banks use to decide how much you can borrow for a home. They sound similar but do different jobs — and for an HDB or EC purchase you must pass both. Here's the plain-English difference, how each is worked out, and which one usually ends up limiting your loan.
The one-line difference
MSR (Mortgage Servicing Ratio) caps your new home-loan repayment alone at 30% of gross monthly income — and it only applies to HDB flats and ECs.
TDSR (Total Debt Servicing Ratio) caps all your monthly debt repayments combined at 55% of gross monthly income — and it applies to every residential property loan.
So MSR looks at one loan; TDSR looks at your whole debt picture. For HDB and EC buyers, both apply at once.
What MSR is
The Mortgage Servicing Ratio limits the monthly instalment on the property loan itself to 30% of your gross monthly income.
It applies only to loans for HDB flats and for Executive Condominiums bought from a developer. It does not apply to private property.
Because it ignores your other debts and uses the tighter 30% cap, MSR is usually the binding limit for HDB/EC buyers.
What TDSR is
The Total Debt Servicing Ratio limits all your monthly debt obligations combined to 55% of gross monthly income.
'All debt' means the new home loan plus car loans, personal and study loans, and credit-card minimum payments.
TDSR applies to every residential property loan — HDB, EC, and private. For private property it's the only servicing-ratio cap (there's no MSR).
How both are calculated
Both use gross monthly income (before CPF and tax). Fixed salary counts in full; variable income — bonuses, commissions, allowances, and rental — is recognised at only 70% (a 30% haircut).
Crucially, the loan instalment in both ratios is computed at a 4% medium-term interest-rate floor set by MAS — not the lower package rate you're actually quoted. That's why the bank's number is usually smaller than a quick sum at today's rate suggests.
Which one actually limits you
For an HDB flat or EC you must clear both, so your maximum loan is set by whichever is tighter — and at 30% vs 55%, that's almost always MSR (unless you carry heavy other debts, which can make TDSR bite first).
For private property there's no MSR, so only TDSR (55%) applies. That's the main reason you can often borrow more for a private home than an HDB flat on the same income.
A third limit, LTV, caps the loan at 75% of the property's value regardless — so your real maximum is the lowest of MSR, TDSR, and LTV.
A quick example
On a S$8,000 gross monthly income with no other debts: MSR allows up to S$2,400/month toward an HDB loan (30%), while TDSR would allow up to S$4,400/month (55%). MSR is lower, so it binds — your HDB repayment is capped at ~S$2,400.
Add a S$1,000/month car loan and TDSR drops to S$3,400 for the home loan, but MSR still caps you at S$2,400 — MSR still binds. For a private home (no MSR), you'd have the full S$3,400 to work with.
Translating a monthly cap into a loan amount depends on tenure and the 4% stress rate — the calculator does that and shows which limit is binding for your numbers.
Frequently asked
What's the difference between MSR and TDSR?
MSR caps your home-loan repayment alone at 30% of gross income and applies only to HDB flats and ECs. TDSR caps all your debt repayments combined at 55% of gross income and applies to every property type.
Does MSR apply to private property?
No. MSR applies only to HDB flats and ECs bought from a developer. For private property, only TDSR (55%) applies — which is why the borrowing limit is often higher.
Which is harder to pass, MSR or TDSR?
For HDB/EC buyers, MSR is usually the tighter limit (30% vs 55%), so it tends to bind first — unless you have significant other debts, which can make TDSR the binding one.
Are MSR and TDSR based on my actual interest rate?
No. Both compute the instalment at a 4% medium-term rate floor, not your quoted package rate. Variable income is also recognised at only 70%.
Estimates only — not financial advice. Final figures depend on the bank’s assessment. Rules current as of 2026-06-10.