TDSR limits all your monthly debt repayments to 55% of gross monthly income (MAS). MSR, which applies to HDB flats and Executive Condos, limits mortgage repayments to 30% of income. Banks test your loan at a stress interest rate, currently a floor of 4% a year for most home loans (3% for HDB loans).
TDSR
Add up your existing car loan, credit card and personal loan repayments plus the new mortgage. The total must not exceed 55% of gross monthly income.
MSR
For HDB flats and new ECs, the mortgage alone cannot exceed 30% of gross monthly income. The lower of TDSR and MSR limits sets your borrowing power.
Example
Household income $10,000 a month, no other debt. MSR allows $3,000 a month. At a 4% stress rate over 30 years, that supports a loan of about $628,000.
Sources to check
Frequently asked questions
Does TDSR use my actual interest rate?
No. Banks use a stress-test rate, which is higher than most actual rates.