Both the Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) are key guidelines in Singapore that limit how much individuals can borrow when applying for a mortgage. They ensure borrowers don’t overextend themselves financially.
TDSR (Total Debt Servicing Ratio):
The TDSR caps your total monthly debt obligations (including your new mortgage, car loans, credit card debt, etc.) at 55% of your gross monthly income.
Even if you qualify for a high LTV ratio, the TDSR may limit the amount you can borrow if you have significant other debts.
It includes all types of property purchases, such as new home purchases, refinancing, and commercial property loans.
MSR (Mortgage Servicing Ratio):
For HDB flats and Executive Condominiums (ECs) purchased directly from developers, the MSR caps your mortgage repayments at 30% of your gross monthly income.
The MSR is applicable only to HDB flats and ECs; private properties are not subject to MSR.
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