How to Calculate Mortgage Servicing Ratio (MSR) in Singapore: A Step-by-Step Guide
MSR caps the instalment on HDB flats and ECs bought from developers at 30% of gross monthly income.
Property is the largest purchase most Singaporeans make, and stamp duties, loan limits and cash requirements are front-loaded. Small mistakes in these figures can mean a shortfall at completion, so it pays to run the numbers before you commit to an option to purchase.
What you need
- Gross monthly household income (S$)
Step by step
- Enter the gross monthly household income (S$).
- The results update as you type, or press Calculate.
- Read the maximum monthly instalment (30%) first, then the supporting figures below it.
The formula
Maximum instalment = 30% × gross monthly income.
Worked example
For example, with these inputs:
- Gross monthly household income (S$): 9,000
the calculator returns:
- Maximum monthly instalment (30%): S$2,700.00
A second example
Now change the inputs to:
- Gross monthly household income (S$): 11,250
the calculator returns:
- Maximum monthly instalment (30%): S$3,375.00
Practical tips
- Banks test your TDSR at a stress-test rate, not the advertised rate, so your borrowing limit is lower than you might expect.
- Stamp duty is based on the purchase price or market value, whichever is higher.
- HDB loans are capped at 25 years and must be fully repaid by age 65.
- Budget for legal fees, valuation, renovation and moving costs on top of the downpayment and stamp duties.
Background
CPF Ordinary Account savings can pay for the downpayment, stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.
The Total Debt Servicing Ratio limits monthly debt repayments to 55% of gross monthly income for any property loan, and the Mortgage Servicing Ratio limits the housing instalment to 30% of income for HDB flats and new executive condominiums. Banks apply a medium-term interest rate in these tests rather than the rate you will actually pay.
Beyond the price, buyers should budget for legal fees, valuation, home insurance, renovation and furnishing. Running the figures in advance helps you decide how much cash to hold back and whether a smaller loan or longer tenure makes more sense.
Related calculations
- Rental Yield Calculator: Measures the return from rent before and after costs such as property tax, maintenance fees and agent fees.
- Home Loan Refinancing Calculator: Compares your current mortgage with a new rate to show the monthly saving and how long switching costs take to recover.
- Property Downpayment Calculator: Splits the downpayment into cash and CPF and shows the remaining loan.
- Buyer's Stamp Duty (BSD) Calculator: Calculates Buyer's Stamp Duty on a Singapore residential property using the tiered rates from 1% to 6%.
Want to skip the arithmetic? The free Mortgage Servicing Ratio (MSR) Calculator does all of this instantly and updates as you type.
Run your own numbers: Mortgage Servicing Ratio (MSR) Calculator