MSR vs TDSR in Singapore: how both limit your home loan

A worked example

Take a household with $8,000 gross monthly income and a $900 monthly car loan.

• MSR ceiling: $8,000 × 30% = $2,400 for the housing instalment.
• TDSR ceiling: $8,000 × 55% = $4,400 for all debts. After the $900 car loan, $3,500 remains.

The HDB instalment is therefore constrained by the lower $2,400 MSR result, before the lender's interest-rate stress test and credit assessment.

When TDSR becomes the tighter limit

With the same $8,000 income but $2,500 of existing monthly debt, TDSR leaves only $1,900 for the new home loan. That is below the $2,400 MSR ceiling, so TDSR becomes the practical constraint.

Existing debts can include car, education, personal and other property loans, plus assessed credit-card obligations. Paying down debt can change affordability, but do not close facilities or restructure borrowing purely to pass a ratio without understanding the lender's rules.

Why a ratio-compliant loan can still be uncomfortable

The regulatory ceilings are not a recommended household budget. They do not know your childcare costs, renovation plan, variable income or retirement targets. CPF recommends prudent planning and notes that a lower housing ratio can leave more room for other commitments.

Use the HDB loan calculator to test a lower monthly budget, then compare it with your HDB loan eligibility and eventual HFE result.

Three useful stress tests

1. Run the budget using stable base income rather than bonuses.
2. Check whether the payment still works if one income falls temporarily.
3. Keep cash and CPF buffers after downpayment, duties and renovation.

Official source and review date

Reviewed 25 Aug 2026 against CPF Board's home-buying guide, which states the current 30% MSR and 55% TDSR ceilings.

Frequently asked questions

What is the MSR limit in Singapore?

MSR is capped at 30% of gross monthly income for housing loans used to buy an HDB flat or an executive condominium whose minimum occupation period has not expired.

What is the TDSR limit in Singapore?

TDSR is capped at 55% of gross monthly income and includes all assessed monthly debt repayments, including the new housing loan.

Do both MSR and TDSR apply to an HDB bank loan?

For an HDB purchase, lenders assess the applicable housing and total-debt limits. The practical housing instalment is constrained by whichever assessment produces the lower permitted amount.