Estimate your TDSR and MSR position to understand how your income and existing debt commitments may affect your home loan affordability.
Estimates are a guide and do not confirm bank approval, legal treatment, tax treatment or transaction costs.
TDSR and MSR measure different aspects of mortgage affordability. Understanding both helps you interpret your estimated monthly servicing capacity more accurately.
TDSR measures your total monthly debt obligations, including the proposed property loan, against your assessable gross monthly income.
MSR measures the portion of your gross monthly income used to service applicable housing loans, primarily for HDB flats and Executive Condominiums where MSR requirements apply.
Use complete and current financial information to obtain a more meaningful estimate of your potential home loan servicing capacity.
Regular salary and variable income such as commissions or bonuses may be assessed differently when determining eligible income.
For a joint application, the relevant income and existing financial commitments of the borrowers are assessed together.
Include existing housing loans, car loans, personal loans and other recurring credit obligations that may affect your borrowing capacity.
Property type, loan tenure, borrower profile and applicable lending requirements can influence the final loan assessment.
Treat the calculated limit as an indication of servicing capacity rather than a recommended borrowing or spending target.
See the maximum monthly debt or mortgage servicing amount indicated by the applicable ratio and assessable income entered.
Your current monthly debt commitments use part of your available servicing capacity and may reduce the amount available for a new housing loan.
Use the remaining amount as a reference, then test a lower monthly repayment that provides sufficient room for everyday expenses, savings and future financial commitments.
Understand how TDSR and MSR affect home loan affordability and how to interpret your calculator results.
The Total Debt Servicing Ratio (TDSR) measures the proportion of your gross monthly income used to service all monthly debt obligations, including the property loan being applied for.
The prevailing TDSR threshold is 55% of gross monthly income.
For example, if the applicable assessable household income is $10,000 per month, total monthly debt repayments would generally need to remain within $5,500, subject to the lender’s assessment.
The Mortgage Servicing Ratio (MSR) measures the proportion of your gross monthly income used for applicable housing loan repayments.
The prevailing MSR limit is 30% of gross monthly income and applies to housing loans for HDB flats and Executive Condominiums where the MSR requirement applies.
TDSR considers all applicable monthly debt obligations, while MSR focuses specifically on housing loan repayments.
Where both requirements apply, the home loan must generally satisfy both limits. This means the lower effective borrowing capacity may ultimately determine how much financing is available.
Generally, no. MSR applies to housing loans for HDB flats and applicable Executive Condominium purchases.
Private residential property financing is generally assessed under the TDSR framework together with other applicable lending requirements.
For a joint home loan application, the relevant assessable income of the borrowers is considered together with their applicable debt commitments.
Adding a co-borrower does not automatically guarantee a higher loan amount because the co-borrower’s existing financial obligations will also form part of the assessment.
Variable income such as bonuses and commissions may be recognised differently from regular fixed salary when a lender assesses borrowing capacity.
The amount recognised can depend on the nature, consistency and supporting history of that income, as well as the applicable regulatory and bank assessment methodology.
Existing financial commitments can include housing loans, car loans, personal loans and other secured or unsecured credit obligations.
These commitments reduce the portion of your monthly servicing capacity available for a new property loan.
No. TDSR and MSR are important affordability criteria, but satisfying them does not guarantee that a bank will approve the requested loan amount.
Banks also consider factors such as your income profile, credit assessment, borrower age, loan tenure, property valuation, existing liabilities and their prevailing credit policies.
A calculator provides an estimate based on the information and assumptions entered.
A bank’s actual assessment may differ because of how it recognises income, calculates existing commitments, applies the relevant assessment interest rate, determines loan tenure and evaluates the borrower’s overall credit profile.
The final eligible loan amount therefore remains subject to the lender’s assessment.
Not necessarily.
A regulatory servicing limit represents a maximum assessment threshold rather than an ideal household budget. CPF Board also encourages homeowners to maintain a prudent housing instalment relative to income rather than automatically borrowing to the maximum permitted level.
Consider maintaining sufficient room for household expenses, savings, renovations, emergencies and potential changes in income or interest rates.
