How Much Can I Borrow for a Singapore Property? TDSR and Loan Eligibility Explained

Disclaimer: This article is for general educational purposes only and does not constitute financial, legal, or professional advice. The information presented is based on publicly available data and may not reflect the most current regulations, rates, or policies. Every individual’s financial situation is unique. You should consult a qualified financial advisor, mortgage banker, or legal professional before making any property purchase or financing decisions. The author and this website accept no liability for any loss or damage arising from reliance on the information provided.

TL;DR: Your maximum loan depends on two things: the TDSR framework (55% of gross monthly income) and LTV limits (75% for your first loan). A household earning $16,000/month with no other debts can borrow roughly $1.87M, supporting a purchase price of about $2.5M. But add a $1,500/month car loan and your borrowing capacity drops by over $300K. The numbers move fast, so it pays to know how the formula works.

Why Your “Maximum Loan” Is Probably Lower Than You Think

Most buyers start their property search with a budget in mind. But when they sit down with a banker, the approved loan amount often comes in lower than expected. The reason is usually one of three things: the stress test interest rate, existing debts they forgot to account for, or the interaction between TDSR and LTV limits.

This guide walks through how banks actually calculate your maximum loan, with specific dollar examples at income levels relevant to the $2.5M to $3.5M property range.

The Two Frameworks: TDSR and MSR

Total Debt Servicing Ratio (TDSR) — 55%

TDSR is the main borrowing limit for private property purchases. It caps your total monthly debt obligations at 55% of your gross monthly income. This includes your new mortgage, plus all existing debts: car loans, personal loans, credit card minimum payments, student loans, and any other ongoing obligations.

Key point: TDSR applies to all property loans from financial institutions, whether the property is private residential, commercial, or industrial.

Mortgage Servicing Ratio (MSR) — 30%

MSR is an additional cap that applies specifically to HDB flats and Executive Condominiums (ECs) purchased directly from developers. It limits your mortgage repayment alone to 30% of gross monthly income.

The Stress Test Rate

When banks assess your TDSR, they do not use the actual interest rate on your loan. They use a stress test rate, currently set at 4% per annum, or the prevailing market rate, whichever is higher.

As of early 2026, most home loan rates sit around 2.5% to 3.2%. But MAS requires banks to stress-test at 4% to ensure borrowers can still service their loans if rates rise. Note that this rate has changed over time and may be adjusted by MAS in the future.

What this means in practice: Your actual monthly repayment might be $7,500, but the bank calculates TDSR based on a repayment of $9,500 at 4%. That higher number is what eats into your 55% limit.

TDSR at Different Income Levels

Let us work through three household income scenarios. All calculations assume a 25-year loan tenure at the 4% stress test rate, with no existing debts.

Scenario 1: $12,000/month Household Income

Maximum monthly debt obligation (55% of $12,000): $6,600
Maximum loan amount at 4% over 25 years: ~$1,254,000
Maximum purchase price at 75% LTV: ~$1,672,000

This household is looking at condos in the $1.5M to $1.7M range. To reach the $2.5M mark, they would need either higher income or a significantly larger downpayment.

Scenario 2: $16,000/month Household Income

Maximum monthly debt obligation (55% of $16,000): $8,800
Maximum loan amount at 4% over 25 years: ~$1,672,000
Maximum purchase price at 75% LTV: ~$2,229,000

Getting closer to the $2.5M range, but still short. This household can comfortably afford a property around $2.2M. To reach $2.5M, they would need to put down more than 25% or have zero existing debts.

Scenario 3: $20,000/month Household Income

Maximum monthly debt obligation (55% of $20,000): $11,000
Maximum loan amount at 4% over 25 years: ~$2,090,000
Maximum purchase price at 75% LTV: ~$2,787,000

This is the sweet spot for the $2.5M to $3.0M range. A household earning $20,000/month with no other debts can comfortably support a purchase up to about $2.8M.

How Existing Debts Reduce Your Borrowing Capacity

This is the part that surprises most buyers. Every dollar committed to existing debt repayments is a dollar subtracted from the TDSR headroom available for your mortgage.

Example: $16,000/month Income with a Car Loan

Gross monthly income: $16,000
TDSR limit (55%): $8,800/month
Car loan repayment: $1,500/month
Available for mortgage: $8,800 - $1,500 = $7,300/month
Maximum loan amount at 4% over 25 years: ~$1,387,000
Maximum purchase price at 75% LTV: ~$1,849,000

Impact: The $1,500/month car loan reduced the maximum purchase price by roughly $380,000 compared to the same household with no car loan.

Example: $20,000/month Income with Car Loan + Credit Card Debt

Gross monthly income: $20,000
TDSR limit (55%): $11,000/month
Car loan repayment: $1,800/month
Credit card minimum payment: $300/month (on $10,000 outstanding balance at 3% minimum)
Available for mortgage: $11,000 - $1,800 - $300 = $8,900/month
Maximum loan amount at 4% over 25 years: ~$1,691,000
Maximum purchase price at 75% LTV: ~$2,255,000

Impact: The car loan and credit card debt together reduced the maximum purchase price by roughly $532,000.

How credit card debt is counted: Banks use 3% of your outstanding balance or $50/month, whichever is higher. So a $1,700 outstanding balance only counts as about $51/month against your TDSR. But larger balances add up quickly: $10,000 outstanding = $300/month, $30,000 outstanding = $900/month. The simplest way to maximise your borrowing capacity is to clear your credit card balances before applying for a mortgage.

What Counts as “Existing Debt” Under TDSR?

Banks include all of the following when calculating your TDSR:

Car loan instalments
Personal loan repayments
Student loan repayments
Credit card minimum payments (typically 3% of outstanding balance)
Existing mortgage repayments (if any)
Renovation loans
Any other instalment plans from financial institutions

Pro tip: If you are planning to buy property in the next 6 to 12 months, consider paying off or reducing your existing debts before applying for a mortgage. Clearing a $1,500/month car loan can increase your borrowing capacity by over $280,000.

LTV Limits and How They Interact with TDSR

The Loan-to-Value (LTV) ratio determines the maximum percentage of the property value the bank will lend you. LTV and TDSR work together to determine your actual borrowing limit, and it is always the lower of the two that applies.

LTV Limits Summary

Loan	LTV Limit	Minimum Cash	Total Downpayment
First housing loan	75%	5%	25%
Second housing loan	45%	25%	55%
Third or subsequent	35%	25%	65%

How LTV and TDSR Interact

Scenario A: TDSR is the binding constraint

A household earning $20,000/month wants to buy a $3.5M condo. At 75% LTV, the bank could lend up to $2,625,000. But at the 4% stress test rate over 25 years, the monthly repayment on $2,625,000 would be roughly $13,840. That exceeds the TDSR limit of $11,000 (55% of $20,000). So the bank will only lend up to about $2,090,000, and the household cannot afford this property without a larger downpayment or higher income.

Scenario B: LTV is the binding constraint

A household earning $30,000/month with no debts wants to buy a $2.5M condo. Their TDSR allows a loan of up to $3,135,000 (far more than needed). But LTV caps the loan at 75% of $2.5M = $1,875,000. They have the income but still need 25% ($625,000) upfront.

The practical takeaway: For most buyers in the $2.5M to $3.5M range, TDSR is the binding constraint, not LTV. But you still need to have enough cash and CPF to meet the LTV downpayment requirements.

Summary: Income vs Maximum Borrowing Capacity

Here is a quick reference table showing the maximum loan amount and purchase price at different household income levels. All figures assume a 25-year loan tenure, 4% stress test rate, 75% LTV (first loan), and no existing debts.

Household Income	Max Monthly Debt (55%)	Max Loan Amount	Max Purchase Price (75% LTV)
$10,000	$5,500	~$1,045,000	~$1,393,000
$12,000	$6,600	~$1,254,000	~$1,672,000
$14,000	$7,700	~$1,463,000	~$1,951,000
$16,000	$8,800	~$1,672,000	~$2,229,000
$18,000	$9,900	~$1,881,000	~$2,508,000
$20,000	$11,000	~$2,090,000	~$2,787,000
$22,000	$12,100	~$2,299,000	~$3,065,000
$24,000	$13,200	~$2,508,000	~$3,344,000
$26,000	$14,300	~$2,717,000	~$3,623,000

Important: These are theoretical maximums. In practice, most banks will also consider your age (loan tenure shortens after 45), employment stability, income type (fixed vs variable), and credit history. Variable income earners such as commission-based or self-employed individuals are often assessed at a lower effective income.

Common Mistakes That Reduce Borrowing Power

Forgetting about credit card debt. Any outstanding revolving balance counts toward TDSR at 3% of the outstanding amount (or $50/month, whichever is higher). A $30,000 credit card balance costs you $900/month in TDSR headroom, reducing your loan by roughly $171,000. Clear your balances before applying.
Not accounting for the car loan. Many couples do not realise how much a car loan eats into their property budget. A $2,000/month car instalment costs over $380,000 in borrowing capacity.
Applying with only one income. If your spouse earns income but is not on the loan application, you are leaving borrowing capacity on the table. Both incomes count toward TDSR when both are co-borrowers.
Assuming variable income at face value. If you earn commissions, bonuses, or freelance income, banks typically apply a 30% haircut or use a 12-month average. Your TDSR-eligible income may be lower than your actual earnings.
Not getting an IPA first. An In-Principle Approval from the bank confirms your exact borrowing limit before you commit to a purchase. Without it, you are guessing.

What About Loan Tenure?

Loan tenure affects your monthly repayment and therefore your TDSR calculation. The maximum tenure for private property loans is 30 years, but it is capped such that the loan tenure plus your age cannot exceed 65 years (or 75 years for some banks with reduced LTV).

A longer tenure means lower monthly repayments, which means more TDSR headroom. But it also means more interest paid over the life of the loan.

Loan Amount	Tenure	Monthly Repayment (4%)	Total Interest
$2,000,000	20 years	$12,120	$908,800
$2,000,000	25 years	$10,560	$1,168,000
$2,000,000	30 years	$9,550	$1,438,000

Extending from 25 to 30 years saves about $1,010/month in repayments but adds roughly $270,000 in total interest. It is a trade-off worth discussing with your banker.

Frequently Asked Questions

Does TDSR apply to cash buyers?

No. TDSR only applies when you take a loan from a financial institution. If you are purchasing entirely with cash and CPF, TDSR is not relevant.

Can I use rental income to boost my TDSR?

Yes, but with conditions. Banks typically recognise 70% of verified rental income (30% haircut for vacancy risk). This can help if you own an investment property with a tenant. You will need to provide the tenancy agreement as documentation.

What if I am self-employed?

Banks assess self-employed borrowers more conservatively. You will typically need to provide 2 years of tax returns (Notice of Assessment) and may have a haircut applied to your declared income. Some banks use the lower of the two years.

Can I increase my borrowing capacity by extending loan tenure?

Yes. A longer tenure reduces your monthly repayment, freeing up TDSR headroom. However, tenure is limited by your age (tenure + age must not exceed 65 for full LTV). If you are 40, your maximum tenure is 25 years for full 75% LTV.

How does TDSR work for a second property loan?

The TDSR limit remains at 55%, but the LTV drops to 45% (meaning you need 55% upfront), and the minimum cash portion rises to 25%. Your existing mortgage repayment also counts toward the 55% TDSR cap, significantly reducing how much you can borrow for the second property.

Want to know your exact borrowing capacity? Book a consultation with me for a personalised TDSR assessment. I will run the numbers based on your specific income, debts, and property goals so you know exactly where you stand before you start viewing.