Guide
Loan limits: TDSR, MSR and loan-to-value
The size of a home loan in Singapore is shaped by rules from the Monetary Authority of Singapore (MAS), not only by the bank's own view of you. Three ratios do most of the work: the total debt servicing ratio (TDSR), the mortgage servicing ratio (MSR) and the loan-to-value limit (LTV). A cap on loan tenure sits alongside them. This guide explains each, then runs an illustrative example.
TDSR: all your debts against your income
TDSR compares your total monthly debt repayments with your gross monthly income. For property loans where the option was granted on or after 16 December 2021, MAS caps the ratio at 55%. Every monthly debt obligation counts: the new home loan, any existing property loans, car loans, student loans, credit card balances and other borrowing.
The effect is simple to picture. If existing debts already take 10% of your income, the new home loan can only use the remaining 45%. Loans above the 55% threshold are meant to be granted only in exceptional cases, with extra approvals inside the bank and reporting to MAS.
TDSR applies to individuals borrowing to buy property of any type, residential or not, which is why it also appears in the industrial and commercial guides.
The stress-test interest rate
Banks do not use today's interest rate when they work out the monthly instalment for TDSR. They use a medium-term rate set by MAS, which is the higher of a floor and the highest rate the loan could carry later in its term, ignoring introductory offers. Since 30 September 2022, the floor has been 4% a year for residential property loans and 5% a year for non-residential property loans. So even if a bank's current package charges less, the TDSR sum assumes at least 4% on a home.
MSR: the extra limit for ECs and HDB flats
MSR looks only at property loans. It caps the share of gross monthly income going to all property loan repayments at 30%. MSR covers HDB flat loans and loans for developer-sold ECs, until the EC's occupation period ends.
An EC buyer therefore faces two tests at once: property loans within 30% of income, and all debts within 55%. Of the two, the stricter result decides the loan. The executive condominium guide explains the rest of the EC rules.
LTV: how much of the price can be borrowed
Loan-to-value caps the loan at a percentage of the price or the valuation, whichever is lower. For a loan from a bank or finance company, MAS ties it to existing housing debt: the more housing loans you already carry, the lower the cap. For options granted on or after 6 July 2018:
| Housing loans already outstanding | Usual LTV | Reduced LTV | Minimum cash payment |
|---|---|---|---|
| None | 75% | 55% | 5% at 75%; 10% at 55% |
| One | 45% | 25% | 25% |
| Two or more | 35% | 15% | 25% |
The reduced band applies when the loan tenure runs beyond 30 years (25 years for HDB flats) or when the borrower would be older than 65 by the end of the loan. Borrowers that are not individuals, such as companies, are limited to 15%.
The minimum cash payment is the part that cannot come from CPF savings. CPF savings can cover the remainder of the downpayment, within CPF Board rules.
Tenure caps
MAS caps housing loan tenure at 35 years for private property, including ECs, and 30 years for HDB flats. Choosing a long tenure lowers the monthly instalment, which helps TDSR and MSR, but tenure beyond 30 years on a private home pushes the loan into the reduced LTV band. Age matters too: a loan that would run past 65 also falls into that band.
An illustrative example
The numbers below are illustrative only, chosen to show the method.
A borrower earns $10,000 a month and already pays $1,000 a month on a car loan. Under TDSR, total debts may reach $5,500 a month, so $4,500 a month is left for the home loan.
The bank prices that instalment at the 4% floor over, say, 30 years. At 4% over 30 years, each $100,000 borrowed costs about $477 a month. Dividing $4,500 by that figure suggests a loan of roughly $940,000.
If the same borrower were buying an EC from a developer, MSR would cap property loan repayments at $3,000 a month, 30% of income. At the same rate and tenure, that supports roughly $628,000, so MSR, not TDSR, sets the limit.
Then LTV applies. With no other housing loan, the loan cannot exceed 75% of the price or valuation. The bank lends the lowest of the TDSR, MSR (where relevant) and LTV results.
Practical points
- **Clear small debts before applying.** A car loan or a revolving card balance reduces the room left for the mortgage dollar for dollar.
- **Variable income is discounted.** MAS rules ask banks to apply a haircut to bonuses, commissions and rental income, so the income counted may be lower than your payslip average.
- **Co-borrowers combine income, and debts.** Adding a co-borrower lifts the income in the TDSR sum but brings their debts in too.
- **Ask for an approval in principle.** It tells you the loan you can expect before you commit to a booking fee.
Calculators and related reading
The private home TDSR calculator applies the 55% cap and the 4% floor to your own numbers. The EC affordability calculator runs MSR and TDSR together. The progressive payment guide shows when the loan is drawn during construction.
For a feel of what different budgets cover, compare a smaller-format home such as The Hillshore with a large suburban development such as Parktown Residence in the directory.
Sources and date checked
Figures checked on 12 November 2026 against these MAS pages:
- MAS: Rules for new housing loans
- MAS: MSR and TDSR rules
- MAS explainer on LTV and tenure, last updated 27 March 2024
- MAS: TDSR thresholds for property loans
- MAS release of 29 September 2022: interest rate floors
Banks may be stricter than the MAS limits. Confirm your own figures with the lender before you book.
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