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TDSR caps a borrower's total monthly debt repayments at 55% of gross monthly income. MSR caps property loan repayments at 30%, but only for HDB flats and ECs within their minimum occupation period, so it covers a new EC but not a private condo. Banks test the new loan at 4% or higher, and the loan-to-value limit also applies.
This article is general information, not financial or investment advice. It summarises rules published by MAS, CEA, CPF and URA as at 12 Nov 2026. A buyer's own loan amount is for a bank to work out: refer buyers to a bank or a licensed financial adviser for their own numbers.
What is TDSR, and what counts towards it?
TDSR is the share of a borrower's gross monthly income that goes to all monthly debt repayments, including the property loan being applied for. For property loans where the OTP is granted on or after 16 Dec 2021, MAS caps it at 55%.3
Total monthly debt obligations divided by gross monthly income, times 100%. MAS tightened the cap from 60% to 55% for OTPs granted on or after 16 Dec 2021.47 MAS says loans above 55% "should only be granted in exceptional cases".3
What goes into the sum, according to MAS:45
- Debts. Every outstanding debt obligation: property loans including the new one, car loans, student loans, renovation loans, credit card loans and any other secured or unsecured loans, including revolving credit.
- Income. Gross monthly income before tax, excluding the employer's CPF contribution.
- Variable income. Commission, bonuses and allowances count at no more than 70%, averaged over the preceding 12 months. Rental income also takes a minimum 30% haircut.
- Joint buyers. For a joint application, the bank adds up all the borrowers' incomes and debts.
The haircut matters for buyers paid on commission, including agents buying for themselves. A buyer who averages S$2,000 a month in commission has at most S$1,400 of it counted.
What is MSR, and when does it apply to new launch buyers?
MSR caps the repayments on all of a borrower's property loans at 30% of gross monthly income. It applies only to housing loans for an HDB flat, or for an EC "where the minimum occupation period of the executive condominium has not expired".2 That covers a new EC bought from the developer. It does not cover a private new launch condo.
Monthly repayment instalments for all property loans divided by gross monthly income, times 100%, which must not exceed 30%.2 MAS Notice 645 applies it to HDB flats where the OTP was granted on or after 12 Jan 2013 and to ECs within their minimum occupation period where the OTP was granted on or after 10 Dec 2013.5
Three points to get right with EC buyers:
- Only property loans count. A car loan or credit card debt does not count towards MSR, but at least 20% of the instalment on a property loan the buyer has guaranteed does.2
- TDSR still applies. MAS expects banks to keep borrowers within both thresholds.2 With a 30% cap on property loans, MSR is the tighter limit unless the buyer's other debts take more than a quarter of their income.
- Existing property loans count. A buyer still repaying a loan on their current flat carries it into both ratios. MAS lets the bank leave it out in set cases, such as when the buyer has a signed undertaking to HDB to sell the flat within the stated period, or has already paid the loan off.45
Why do banks test the loan at 4% when mortgage rates are lower?
Because MAS requires it. For a residential purchase loan with an OTP granted on or after 30 Sep 2022, banks work out the new loan's instalment at the higher of 4% a year or the loan's thereafter interest rate, and use that figure in both TDSR and MSR.58
The rate banks must use for the new loan when computing TDSR and MSR: the higher of 4% a year or the thereafter interest rate, which MAS defines as "the highest interest rate offered by an FI at any time during the tenure of a property loan". It applies only to the loan being applied for, not to existing loans.4 The floor was 3.5% for OTPs granted before 30 Sep 2022.5
The 4% figure comes from the joint MAS, MND and HDB release of 29 Sep 2022.8 We found no change announced since, and MAS's Financial Stability Review of Sep 2026 describes the floor as still in force. That review noted that fixed-rate packages offered by banks had fallen to around 1.5% in Q2 2026, from 2.5% a year earlier, and added:
"Nonetheless, the 4% medium-term interest rate floor used to compute the TDSR continues to constrain borrower capacity, even as prevailing mortgage rates declined." (MAS, Financial Stability Review, Sep 2026)9
Two consequences for new launch buyers:
- Today's package rate does not set the loan. A lower package rate reduces the buyer's instalments, but the bank's test still uses 4% or more.
- The full loan is tested from the start. A new launch is paid for in instalments as each stage of construction is completed,13 but MAS Notice 645 says a bank "must assume that a credit facility in relation to an uncompleted Property is fully disbursed".5
How do TDSR, MSR and the loan-to-value limit work together?
They are separate caps, and the lowest one sets the loan. TDSR and MSR limit the loan by income. The loan-to-value (LTV) limit caps it as a share of the price or valuation, and it falls sharply if the buyer already has a housing loan.6
| Outstanding housing loans | LTV limit | Minimum cash downpayment |
|---|---|---|
| None | 75%, or 55% for a longer loan | 5% at 75% LTV, 10% at 55% |
| One | 45%, or 25% for a longer loan | 25% |
| Two or more | 35%, or 15% for a longer loan | 25% |
Source: MAS, for loans on residential property where the OTP is granted on or after 6 Jul 2018.6
- A longer loan means a lower limit. The lower LTV applies if the tenure exceeds 30 years (25 years for HDB flats) or the loan runs past the borrower's age of 65. Joint borrowers use their income-weighted average age.6
- Maximum tenure. 35 years for non-HDB properties and 30 years for HDB flats.6
- Upgraders. A buyer who keeps a home with a loan on it drops to the 45% row for the new purchase.6 Owners of an HDB flat or an EC must also meet HDB's minimum occupation period before buying private property.13
For the payment stages, stamp duties and other costs that sit alongside these limits, see New launch condos in Singapore in 2026: what should buyers weigh?
What does the arithmetic look like? A worked example
The household and prices below are made up to show how the rules combine. They are not an estimate of what any buyer can borrow: banks run their own checks and may lend less.
Illustrative household. Two joint buyers, both aged 33, with no housing loan. Buyer A earns a fixed S$6,500 a month. Buyer B earns a fixed S$4,000 plus commission averaging S$2,000 a month over the past 12 months. They repay a car loan of S$800 a month. Both loans below run 30 years, ending before age 65, so the 75% LTV row applies. At the 4% test rate over 30 years, each S$100,000 borrowed costs S$477.42 a month.
| Illustrative step | New launch condo (TDSR) | New EC from the developer (MSR and TDSR) |
|---|---|---|
| Price (made up) | S$1,500,000 | S$1,300,000 |
| Income counted: S$6,500 + S$4,000 + 70% of S$2,000 | S$11,900 | S$11,900 |
| Ratio cap | 55%: S$6,545 for all debts | 30%: S$3,570 for property loans |
| Other debts in the ratio | Car loan S$800, leaving S$5,745 | Car loan not counted, leaving S$3,570 |
| Largest loan the cap supports at 4% | About S$1,203,000 | About S$748,000 |
| Loan at 75% LTV | S$1,125,000 | S$975,000 |
| Test instalment on the 75% loan | S$5,370.92, TDSR 51.9% | S$4,654.80, MSR 39.1%: over 30% |
| Limit that decides the loan | LTV: up to S$1,125,000 | MSR: up to about S$748,000 |
| Paid from cash and CPF | S$375,000, at least S$75,000 in cash | About S$552,000 |
| TDSR on that loan | 51.9% | 36.7% |
Sources for the rules applied: MAS.2456 Arithmetic: ProjectSG, using the standard monthly repayment formula; a bank's own method may give a higher instalment.
What the example shows:
- For the condo, LTV decides. Income would support about S$1,203,000 at the test rate, but 75% of the price caps the loan at S$1,125,000.
- For the EC, MSR decides. The same household passes TDSR easily but fails MSR at 75% LTV. The loan drops to about S$748,000, and the cash and CPF needed rise from 25% of the price to about 42%. CPF savings can only be used within CPF's own housing limits.13
- The package rate is not the test. At an illustrative 1.5%, close to the fixed-rate level MAS reported for Q2 2026,9 the condo loan would cost S$3,882.60 a month. The bank still tests S$5,370.92.
- Clearing other debt helps TDSR only. Paying off the car loan would add S$800 of TDSR room. It would not change the EC's MSR limit at all.
How is an HDB loan different from a bank loan?
An HDB loan is HDB's own housing loan for HDB flats; a bank loan comes from a financial institution. The income tests differ, and CPF sets out the main contrasts.10
| HDB loan | Bank loan | |
|---|---|---|
| Interest rate | Currently 2.6% a year, pegged to the CPF Ordinary Account rate | Floating, pegged to a benchmark such as SORA, or fixed for a period |
| Maximum loan | Up to 75% of the price (BTO), or of the resale price or valuation, whichever is lower | Up to 75% of the valuation or price, whichever is lower |
| Downpayment | At least 25%, which can all come from CPF OA | 25%: 5% in cash, the rest in cash or CPF OA |
| Income test | Housing loan repayments up to 30% of gross monthly income | Total debt obligations up to 55% of gross monthly income |
| Rate used to work out the loan | 3% floor, introduced from 30 Sep 20228 | Higher of 4% or the thereafter rate5 |
Sources: CPF Board, 12 Jun 2026,10 except where marked. CPF also notes that refinancing a bank loan into an HDB loan is not possible.10 The 3% floor comes from the 29 Sep 2022 release; we found no later HDB statement of it, so check with HDB for a current figure.
For a new launch agent, HDB loans matter mostly because of the buyer's current flat. An HDB loan still running on it is a property loan, so it counts towards TDSR, and towards MSR for an EC purchase, unless the bank can exclude it.45 For how these lending limits fit into the wider market picture, see Is the property market in Singapore finally stabilising?
What can you tell buyers, and what should you leave to the bank?
Explain the rules, and leave the buyer's own numbers to a bank or licensed adviser. CEA's Professional Service Manual expects you to tell clients about financing rules "such as the available loan-to-value ratio likely to be granted", but it lists "advice on bank loan eligibility" as a matter to refer to banks.11
What CEA's rules say:
- Inform. Tell clients about relevant or new financing rules, stamp duties and, if CPF is used, the CPF rules.11
- Refer. Unless you know the financing terms in detail, ask the client to get advice "such as from a finance broker or institution", and ask them to check their finances with their financial advisers or bankers before paying the option fee.11 URA gives buyers the same advice: check loan eligibility with the bank "preferably before you pay the booking fee".13
- Do not reassure. The Manual says salespersons "should not make any misleading statement to assure a prospective client that there is no or little problem to obtain a mortgage loan".11
- Disclose. If you recommend a mortgage broker or other service provider, disclose any relationship and any fee you receive, in writing, and get the client's written consent.11
- Recommend professionals. The Code of Ethics requires you to encourage clients to seek professional advice on material matters beyond your knowledge or expertise.12
- Never refer to moneylenders. Introducing a client to a moneylender is an offence, with a fine of up to S$25,000, up to 12 months' jail, or both.12
| Instead of | Try |
|---|---|
| "With your income you can borrow about S$1.2 million." | "MAS caps total debt repayments at 55% of gross income, tested at 4% or more. A bank will work out your figure, so let's get an in-principle approval first." |
| "Don't worry, the loan will go through." | "The bank decides that. Please check your eligibility with a bank before you pay the booking fee." |
| "Rates are about 1.5% now, so you can afford more." | "Banks test the loan at 4% or higher, whatever today's package rate is." |
| "For an EC you only need 25% down." | "For an EC, property loan repayments are capped at 30% of income, which can mean a smaller loan and a bigger downpayment. Your bank can tell you your figure." |
| "Use my mortgage broker, it's free." | "I can introduce a broker. Here, in writing, is my relationship with them and any fee I receive." |
The same care applies to ads and WhatsApp broadcasts that mention loans or affordability: see the CEA advertising rules in our new launch landing page checklist.
Frequently asked questions
Does MSR apply to a private new launch condo?
Does TDSR also apply when a buyer takes a bank loan for an EC?
Yes. MAS expects banks to keep housing loan borrowers within both the MSR and TDSR thresholds.2 An EC buyer must keep property loan repayments within 30% of gross monthly income and all debt repayments within 55%.
Is the 4% test rate still in force in 2026?
MAS set the floor at 4% for residential purchase loans with an OTP granted on or after 30 Sep 2022, in its release of 29 Sep 2022.8 MAS Notice 645, last revised on 21 Aug 2025, carries the same rate, and MAS's Financial Stability Review of Sep 2026 describes it as still constraining borrowers.59 We found no later change as of 12 Nov 2026.
Why does the bank use the full loan when a new launch is paid in stages?
MAS Notice 645 tells banks to assume that a loan for an uncompleted property is fully disbursed when they compute TDSR and MSR.5 The test uses the whole loan from the start, not the part drawn during construction.
Sources
- Monetary Authority of Singapore, Rules for new housing loans, last revised 16 Dec 2021, accessed 12 Nov 2026.
- Monetary Authority of Singapore, Mortgage Servicing Ratio and Total Debt Servicing Ratio rules, last revised 16 Dec 2021, accessed 12 Nov 2026.
- Monetary Authority of Singapore, TDSR thresholds for property loans, last revised 16 Dec 2021, accessed 12 Nov 2026.
- Monetary Authority of Singapore, Calculating TDSR for property loans, last updated 29 Sep 2022, accessed 12 Nov 2026.
- Monetary Authority of Singapore, MAS Notice 645: Computation of Total Debt Servicing Ratio for Property Loans, 28 Jun 2013, last revised 21 Aug 2025.
- Monetary Authority of Singapore, Loan tenure and loan-to-value limits, last updated 27 Mar 2024, accessed 12 Nov 2026.
- Monetary Authority of Singapore, Measures to cool the property market, 15 Dec 2021.
- Monetary Authority of Singapore, Measures to promote sustainable conditions in the property market by ensuring prudent borrowing and moderating demand (joint MAS-MND-HDB release), 29 Sep 2022.
- Monetary Authority of Singapore, Financial Stability Review 2026, 22 Sep 2026.
- CPF Board, HDB loan or bank loan? 3 differences you should know, 12 Jun 2026, accessed 12 Nov 2026.
- Council for Estate Agencies, Practice Guidelines: Professional Service Manual, version 1.0, 1 Jan 2014, accessed 12 Nov 2026.
- Council for Estate Agencies, Estate Agents (Estate Agency Work) Regulations 2010, including the Code of Ethics and Professional Client Care, version in force from 22 Dec 2023, accessed 12 Nov 2026.
- Urban Redevelopment Authority, Home Buyers' Guide: buying an uncompleted private residential property, accessed 12 Nov 2026.
The ProjectSG team writes about Google Ads, lead generation and new launch marketing for Singapore property agents, drawing on campaigns we run every day.
Researched and drafted with AI assistance, then fact-checked and approved by a named ProjectSG reviewer before publishing. Last updated 12 Nov 2026. Read our editorial policy. Spotted an error? Email info@project.sg.
