TDSR: all debts, 55%
Total monthly repayments on all debts, including the new home loan, car loans and other credit, cannot exceed 55% of gross monthly income.
MSR: home loan only, 30%, HDB and EC
For HDB flats and executive condominiums, the home loan repayment alone cannot exceed 30% of gross monthly income. Both TDSR and MSR apply, and the stricter one binds.
LTV: how much of the price can be borrowed
For bank loans, the usual limits are 75% for a first housing loan, 45% for a second and 35% for a third or later, and they tighten when tenure or age limits are exceeded.
Worked example
A buyer earns S$10,000 a month and pays S$1,200 on a car loan. The TDSR cap is S$5,500, so at most S$4,300 is left for the home loan. If the property is an HDB flat, MSR caps the home loan at S$3,000, so S$3,000 is the real limit.
Common mistakes
- Applying MSR to private condos.
- Leaving existing debts out of TDSR.
- Confusing LTV (price) with TDSR (income).
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