TDSR and MSR: What MAS Notices 645, 1115, 831 and 128 Mean for

The Total Debt Servicing Ratio (TDSR) caps your total monthly debt repayments at 55% of gross monthly income, and if you are buying an HDB flat or a new executive condominium, the Mortgage Servicing Ratio (MSR) cuts the housing component to 30%. That is the rule that decides whether your bank says yes.

Key takeaways

• TDSR applies to all property loans and counts every debt you carry: property, car, renovation, credit cards, and more.
• MSR caps HDB and new EC housing loans at 30% of gross monthly income; resale ECs escape MSR but still face TDSR.
• Variable and rental income is discounted: only 70% is counted, averaged over the preceding 12 months.
• The TDSR ceiling was cut from 60% to 55% on 16 December 2021 for options to purchase granted on or after that date.
• With new launches at S$2,304 psf and resale at S$1,595 psf, TDSR is not a formality — it is the affordability test that matters most.

What TDSR is and why MAS imposes it

The TDSR is the Monetary Authority of Singapore's cap on how much of your gross monthly income can go toward debt repayment. The formula is blunt: take all monthly debt obligations, divide by gross monthly income, and multiply by 100. The total cannot exceed 55% (Monetary Authority of Singapore, 2026).

The cap applies to property loans from banks and financial institutions, and it includes the loan you are applying for. That last point often surprises buyers: your new mortgage is added to your existing debts before the ratio is tested, not after. A buyer with a car loan, a renovation loan, and a credit card balance must service all of them within the same 55% band as the new home loan.

The MAS guidelines under Notices 645, 1115, 831 and 128 direct financial institutions to apply the TDSR framework consistently across the lending system (Monetary Authority of Singapore, 2026). The four notices cover different classes of lenders, but the arithmetic is identical. There are no friendlier banks when it comes to the ceiling.

Why did MAS build this fence? Three reasons: to stop borrowers from stacking up debt, to force financial prudence, and to keep the property market sustainable over the long run (99.co, 2021). The 55% ceiling is not a suggestion; it is a statutory lending limit.

The tightening on 16 December 2021

The limit was 60% before 16 December 2021. MAS cut it to 55% as part of that night's cooling measures, and the tighter ratio applies to property purchases where the Option to Purchase was granted on or after that date (99.co, 2021). It also applies to mortgage equity withdrawal loan applications made on or after 16 December 2021. Existing property loans granted before the cut are not affected.

This matters if you are refinancing. A loan approved before the rule change stays under the old 60% logic, but a fresh application for a mortgage equity withdrawal loan is assessed at 55%. The message is clear: the regulator wants to know exactly what you can carry today, not what you could carry five years ago.

The four notices and how they bind lenders

Notice 645. Notice 1115. Notice 831. Notice 128. You will not sign them, but your bank lives by them. These are the MAS directives that make TDSR compulsory for property loans (Monetary Authority of Singapore, 2026). They cover regulated lenders across the financial system, so the 55% ceiling does not change based on whether you walk into a bank or a finance company.

Even if you think you can handle a 60% ratio, the lender's system will stop you at 55%. The guidelines tell financial institutions exactly how to count income, which debts to include, and how to treat variable pay. Your personal view of your own cash flow is irrelevant; the bank's compliance system follows the notices.

For property professionals, the exact notice number matters because each applies to a specific category of lender. For you, the takeaway is uniformity. TDSR is not a negotiating point. It is not a bank policy that a relationship manager can waive. It is a regulatory floor, and every lender in Singapore has the same floor.

How TDSR is calculated

The formula is simple; the details are not.

What counts as income

Start with gross monthly income. For a salaried employee, that is straightforward. For variable income — commissions, bonuses, allowances, rental income — only 70% is counted. The lender takes the average of the variable income you earned over the preceding 12 months, then applies the 70% factor (Monetary Authority of Singapore, 2026). So a S$1,000 monthly bonus does not add S$1,000 to your assessed income; it adds S$700.

This is a deliberate discount. MAS does not want your borrowing capacity built on income that can vanish when the economy turns. A trader who earned a huge bonus last year but has a modest base salary will find their loan capped by the base, not the bonus.

The debt list

Then list every monthly debt obligation. The list is wider than most buyers expect:

• the property loan you are applying for,
• any existing property loans,
• car loans,
• renovation loans,
• student loans,
• credit card debt.

The total cannot exceed 55% of your assessed gross monthly income (Monetary Authority of Singapore, 2026). If it does, the bank will approve a smaller loan, ask for a bigger downpayment, or reject the application outright.

MSR: the tighter sibling

If you are buying an HDB flat or a new executive condominium, there is a second, lower ceiling. The Mortgage Servicing Ratio caps all property loan repayments at 30% of gross monthly income (99.co, 2019). It applies to both HDB loans and bank loans, and it does not include employer CPF contributions in the income base.

MSR counts only property loans; TDSR counts everything. For an HDB purchase, you must pass both. That means the binding limit is almost always MSR, because 30% is far lower than 55%.

For a resale EC, MSR does not apply; only TDSR does (99.co, 2019). For a new EC, both apply. This asymmetry is easy to miss, and it can change your budget by hundreds of thousands of dollars. The practical effect is that HDB upgraders moving to a resale EC get more borrowing room than they had in the public housing market, but they are still held to the full TDSR debt count.

What the numbers say about buying under TDSR

The ratio is fixed, but prices are not. PropAce Institutional Advisory's compilation of URA caveat data shows islandwide private prices averaged S$2,038 psf in Q2 2026, still 6.8% below the S$2,186 psf peak, yet 33.3% above the S$1,529 psf trough (PropAce Institutional Advisorydata, 2026). The market has cooled from the top, but it is nowhere near cheap.

New launches averaged S$2,304 psf in the same period, against S$1,595 psf for resale — a 44% premium (PropAce Institutional Advisorydata, 2026). That premium is not a rounding error. A new launch costs roughly 44% more per square foot than a resale flat of similar age and location. Under a 55% TDSR ceiling, that premium eats your borrowing capacity fast.

Region matters as much as timing

The private market is not one market. Prime-core (CCR) transactions averaged S$2,444 psf, city-fringe (RCR) S$2,078 psf, and suburban (OCR) S$1,551 psf (PropAce Institutional Advisorydata, 2026). With TDSR at 55%, the difference between CCR and OCR is the difference between a comfortable approval and a borderline one.

If you are basing your budget on a headline islandwide price, you are planning with the wrong number. Your target region determines your psf, and your psf determines the loan quantum that the TDSR will allow.

HDB prices are at their peak

HDB prices averaged S$652 psf in Q2 2026, exactly matching their previous peak and sitting 57.5% above the S$414 psf trough (PropAce Institutional Advisorydata, 2026). HDB buyers face the MSR cap of 30%, so they get hit from both sides: prices are at record highs, and the borrowing ceiling is tighter than for private buyers.

This is the real-world effect of TDSR and MSR. They do not stop you from buying; they stop you from borrowing what you want. At S$2,038 psf islandwide, private property is a 55%-ratio purchase. At S$652 psf, HDB is a 30%-ratio purchase. Plan accordingly.

Worked example: S$5,000 a month, no other debts

Take a borrower with S$5,000 gross monthly income and no outstanding loans. The MSR calculator puts the 30% cap at S$1,500; the TDSR calculator puts the 55% cap at S$2,750 (99.co, 2021). For an HDB flat or new EC, S$1,500 is the maximum monthly housing loan repayment. For a private property, S$2,750 is the maximum total debt, including the new mortgage.

Now add S$1,000 a month in variable income to the same S$5,000 picture. Assume S$4,000 is fixed salary and S$1,000 is commission. Only 70% of the commission counts, so assessed income becomes S$4,000 plus S$700, or S$4,700. Your TDSR ceiling drops to S$2,585, and your MSR ceiling drops to S$1,410. A S$300 monthly commission discount costs you S$165 of TDSR headroom and S$90 of MSR headroom.

Then add an existing car loan. If you pay S$500 a month for the car, your private-property mortgage allowance falls from S$2,750 to S$2,250. Your HDB mortgage allowance falls from S$1,500 to S$1,000. That is the difference between a two-bedder and a studio.

This is why the worked example matters. TDSR is not about the property price alone; it is about every payment you have already promised to make. A buyer's maximum loan is not set by how much they think they can afford. It is set by the bank's spreadsheet.

What to do if you fail TDSR or MSR

Failing the ratio does not kill the purchase. It changes the deal.

The three standard fixes

First, put more money down. A larger downpayment shrinks the loan, which shrinks the monthly repayment, which brings you under the cap. Second, stretch the loan tenure to reduce monthly repayments, subject to Loan-to-Value rules and age limits. Third, buy a cheaper property (99.co, 2021). None of these are exciting, but they work.

Do not stretch to the ceiling. The 55% limit is a regulatory maximum, not a financial plan. Most prudent borrowers keep total debt service between 30% and 40% of income (99.co, 2021). That buffer matters when interest rates climb or variable income dips.

The exemptions

There are two narrow exemptions worth knowing. TDSR does not apply when you refinance an existing housing loan for an owner-occupied property (99.co, 2021). MSR is also waived when refinancing an HDB flat bought before 12 January 2013 or an EC bought before 10 December 2013, provided the unit is owner-occupied (99.co, 2019). Refinancing under the old rules can preserve your previous borrowing capacity, but only if you actually live in the property.

Do not assume an exemption applies to a new purchase. These are refinancing relief valves, not purchase loopholes.

FAQ

What is the difference between TDSR and MSR?

TDSR caps all your monthly debt repayments at 55% of gross monthly income, while MSR caps property loan repayments at 30% of income. MSR applies only to HDB flats and new ECs; TDSR applies to all housing loans.

Statutory Source: Housing & Development Board (HDB) — Official Housing Policies & Resale Guidelines

How do I calculate TDSR?

Add up all monthly debt repayments, including the property loan you are applying for, divide by gross monthly income, and multiply by 100. The result must stay at or below 55%. Variable income is counted at 70% and averaged over 12 months.

Statutory Source: Monetary Authority of Singapore (MAS) — MAS Notice 645 Property Loan Regulations & TDSR Limits

Does MSR apply to resale ECs?

No. MSR does not apply to resale ECs; only TDSR applies. For new ECs and all HDB flats, both MSR and TDSR apply, and the 30% MSR ceiling will usually bind first.

Statutory Source: Housing & Development Board (HDB) — Official Housing Policies & Resale Guidelines

Are there TDSR exemptions?

Yes, but they are narrow. TDSR is waived when you refinance a housing loan on an owner-occupied property. MSR is also waived for refinancing certain older HDB flats and ECs bought before the respective MSR implementation dates.

Statutory Source: Housing & Development Board (HDB) — Official Housing Policies & Resale Guidelines

What is a good TDSR?

A good TDSR is 30% to 40% of gross monthly income. The 55% regulatory ceiling is not a target; you should plan to stay well below it to absorb interest rate increases and other financial shocks.

Statutory Source: Monetary Authority of Singapore (MAS) — MAS Notice 645 Property Loan Regulations & TDSR Limits

By the numbers

``` Private PSF momentum by district — QoQ %

D11 +28.6% ██████████████████████████ D26 +12.0% ███████████ D25 +8.8% ████████ D12 +6.6% ██████ D08 +5.4% █████ D20 +4.0% ████ D28 +3.9% ████ D02 +0.2% █ D14 -0.5% ░ D22 -0.6% ░ ```

_Data: PropAce Institutional Advisory analysis of URA/HDB transaction data — rolling 3-month average PSF, private residential, 2026-06..2026-08. Directional; confirm before acting._

Sources

• URA caveat data, compiled by PropAce Institutional Advisory— 2026-Q2.
• URA caveat data, compiled by PropAce Institutional Advisory.

References

• Monetary Authority of Singapore (2013) GUIDELINES ON THE APPLICATION OF TOTAL DEBT SERVICING RATIO FOR PROPERTY LOANS UNDER MAS NOTICES 645, 1115, 831 AND 128.

Interactive Strategic Tools & Concierge

Check your maximum mortgage ceiling stress-tested against the MAS 4.0% interest rate floor.

Calculate Borrowing Capacity with TDSR Calculator

Frequently Asked Questions

What is the difference between TDSR and MSR?

TDSR caps all your monthly debt repayments at 55% of gross monthly income, while MSR caps property loan repayments at 30% of income. MSR applies only to HDB flats and new ECs; TDSR applies to all housing loans. Statutory Source:** Housing & Development Board (HDB) — Official Housing Policies & Resale Guidelines

How do I calculate TDSR?

Add up all monthly debt repayments, including the property loan you are applying for, divide by gross monthly income, and multiply by 100. The result must stay at or below 55%. Variable income is counted at 70% and averaged over 12 months. Statutory Source:** Monetary Authority of Singapore (MAS) — MAS Notice 645 Property Loan Regulations & TDSR Limits

Does MSR apply to resale ECs?

No. MSR does not apply to resale ECs; only TDSR applies. For new ECs and all HDB flats, both MSR and TDSR apply, and the 30% MSR ceiling will usually bind first. Statutory Source:** Housing & Development Board (HDB) — Official Housing Policies & Resale Guidelines

Are there TDSR exemptions?

Yes, but they are narrow. TDSR is waived when you refinance a housing loan on an owner-occupied property. MSR is also waived for refinancing certain older HDB flats and ECs bought before the respective MSR implementation dates. Statutory Source:** Housing & Development Board (HDB) — Official Housing Policies & Resale Guidelines

What is a good TDSR?

A good TDSR is 30% to 40% of gross monthly income. The 55% regulatory ceiling is not a target; you should plan to stay well below it to absorb interest rate increases and other financial shocks. Statutory Source:** Monetary Authority of Singapore (MAS) — MAS Notice 645 Property Loan Regulations & TDSR Limits

Statutory References & Citations

• Monetary Authority of Singapore (MAS) (2026). Notice 645: Computation of Total Debt Servicing Ratio (TDSR) for Property Loans. Singapore: MAS.
• Housing & Development Board (HDB) (2026). Housing and Development Act (Cap. 129). Singapore: Ministry of National Development.

Statutory Disclaimer: This guide is published for strategic, educational, and institutional planning purposes only and does not constitute formal legal, taxation, or financial advice. All property transactions, stamp duty remissions, and financing structures should be formally verified with qualified Singapore legal counsel and certified tax advisors.