What is the Total Debt Servicing Ratio?
- The Total Debt Servicing Ratio is a maximum threshold set by MAS. However, FIs may grant property loans to borrowers whose TDSR exceeds the threshold on an exceptional basis, subject to enhanced credit evaluation.
- The TDSR threshold for property loans is set at a maximum of 60% of the borrower’s monthly income.
- It applies to housing loans for the purchase of private properties and executive condominiums
Calculating TDSR
- Under the TSDR guidelines, your monthly monthly debt obligations and gross monthly income will be taken into account
- A borrower’s TDSR is calculated using the following formula:
- (Borrower’s total monthly debt obligations / Borrower’s gross monthly income) x 100%
Monthly Debt Obligations
Monthly debt includes all outstanding debt obligations:
- Property-related loans, including the loan being applied for.
- Car loans.
- Student loans.
- Renovation loans.
- Credit card loans.
- Any other secured or unsecured loans, including revolving loans.
For more details, please refer to the MAS website here: Total Debt Servicing Ratio for Property Loans
