Total Debt Servicing Ratio (TDSR) in Singapore: Your Questions Answered
These are the questions people ask most often about total debt servicing ratio (tdsr). Each answer is short; follow the links for the full detail.
What does a total debt servicing ratio (tdsr) calculation tell me?
TDSR limits all monthly debt repayments to 55% of gross monthly income when you take a property loan.
What is the formula?
Room for new loan = 55% × income − existing monthly debts.
What do I need to enter?
Gross monthly income (S$), Existing monthly debt payments (S$).
Should I rely on this before signing?
Use it to plan, then confirm the figures with your banker, lawyer or the IRAS stamp duty calculator before you exercise an option to purchase.
Can you show an example?
For example, with these inputs:
- Gross monthly income (S$): 12,000
- Existing monthly debt payments (S$): 800
the calculator returns:
- Total debt allowed (55%): S$6,600.00
- Room left for a new mortgage: S$5,800.00
- Current TDSR: 6.67%
Any tips?
- Seller's Stamp Duty can wipe out the gains on a quick resale, so check your holding period before selling.
- 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 must be paid within 14 days of signing, so have the cash ready before you exercise the option.
Background
Singapore's property market is shaped by cooling measures introduced since 2009, including Additional Buyer's Stamp Duty, loan-to-value limits and debt servicing ratios. These rules are adjusted when the market runs hot, so the numbers you see today may differ from what friends paid a few years ago.
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stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.
Stamp duties are paid upfront. Buyer's Stamp Duty applies to every purchase at tiered rates up to 6%, while ABSD depends on the buyer's residency status and how many residential properties they already own. Sellers who dispose of a property within the holding period pay Seller's Stamp Duty.
Related calculations
- Property Affordability Calculator: Estimates the biggest loan and property price your income supports under TDSR, using the stress-test rate banks apply.
- 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.
Try it yourself with the Total Debt Servicing Ratio (TDSR) Calculator.
Run your own numbers: Total Debt Servicing Ratio (TDSR) Calculator