The Total Debt Servicing Ratio — TDSR — is one of the most important concepts in Singapore property financing. Getting clear on how it works, what counts toward it, and how to improve it before you apply for a loan can be the difference between qualifying for the property you want and having to settle for something smaller.
What TDSR Is
TDSR is a regulatory cap introduced by MAS that limits total monthly debt obligations to 55% of gross monthly income. If your gross household income is $12,000 per month, your total monthly debt obligations — including the new mortgage — cannot exceed $6,600.
What Counts Toward TDSR
All debt obligations count: home loans, car loans, student loans, personal loans, credit card minimum payments (typically 5% of the outstanding balance per month). Lenders will pull your credit bureau report and add up every obligation.
How To Improve Your TDSR Position
Clear credit card balances completely before applying. Fully repay any personal loans. If you have a car loan, consider whether the TDSR headroom it creates is worth the adjustment. Each dollar of monthly obligations you eliminate expands your qualifying loan quantum meaningfully.