Insights · Jun 13, 2026 · 8 min read

TDSR, MSR & LTV: How Much Property Can You Actually Afford?

Almost every buyer I meet starts in the wrong place. They fall in love with a unit, then ask whether they can afford it. The bank works the other way round — and so should you. Before you view anything, three rules quietly decide your real budget: TDSR, MSR and LTV. Understand them and you shop with confidence. Ignore them and you fall for a place the bank will never fully fund.

Here’s how each one works, in plain English.

TDSR — the 55% ceiling on all your debt

Total Debt Servicing Ratio (TDSR) is the big one. It says your total monthly debt repayments — across everything — cannot exceed 55% of your gross monthly income.

“Everything” means everything: the new home loan, plus car loans, personal loans, credit card instalments, even your share of a guarantor obligation. Add them all up; they must sit under 55% of what you earn each month.

One catch most people miss: the bank doesn’t calculate your home loan at today’s low rate. It stress-tests you at a medium-term floor rate — currently 4% per annum (or the actual rate, whichever is higher). So even if your real rate is 3%, your TDSR is assessed as if you’re paying 4%. That deliberately leaves you a buffer if rates rise.

MSR — the extra 30% cap, but only for HDB and EC

Mortgage Servicing Ratio (MSR) is a second, tighter gate — and it applies only to HDB flats and Executive Condominiums bought from a developer.

MSR caps just your new home loan repayment at 30% of gross monthly income. Not all your debt — only the property loan. So for an HDB or new EC, you must pass both tests: the home loan under 30% (MSR) and your total debt under 55% (TDSR). Whichever bites first sets your limit.

For a private resale condo, there’s no MSR — only TDSR applies. That’s one reason the same income can support a larger private loan than an HDB loan.

LTV — how much the bank will actually lend

Loan-to-Value (LTV) decides what fraction of the price the bank funds — the rest you cover in cash and CPF.

For your first property, the maximum is 75% of the price or valuation (whichever is lower) — if your loan tenure is 30 years or less and doesn’t run past age 65. Stretch the tenure beyond that and LTV drops to 55%. The 25% you fund yourself splits into at least 5% cash and the rest cash or CPF.

LTV falls sharply for second and subsequent properties (and if you have existing home loans running), which is exactly why portfolio planning matters — but for a first home, 75% is your working number.

Putting the three together

Think of them as three gates your purchase must pass through:

Your real budget is whatever the strictest gate allows. For an HDB buyer, MSR usually bites first. For a private buyer with other debts, TDSR usually does. And LTV decides how much cash and CPF you need ready on day one.

Hey — quick hello, I’m Melvin

If we haven’t met: I’m Melvin Lau, a property strategist with PropNex (CEA R067207F). I don’t just open doors for viewings — I help homeowners work out their real budget and sequence the big moves before they sign anything. Most of my work is exactly this kind of numbers-first planning.

If any of this feels relevant to your own situation, just message me — no pitch, no obligation, happy to talk it through.

WhatsApp Melvin →

The mistake that quietly shrinks your budget

It’s almost always existing debt. A car loan, a big credit-card balance, a personal loan — each one eats into the same 55% TDSR pool, leaving less room for the mortgage. I’ve seen a couple’s affordable budget jump by a few hundred thousand dollars simply by clearing a car loan before applying.

The other silent killer is tenure and age. A longer loan lowers your monthly repayment (helping TDSR/MSR), but push it past 30 years or beyond age 65 and your LTV gets cut — so you suddenly need far more cash up front. The sweet spot is a tenure long enough to pass the ratios but short enough to keep your LTV at 75%.

This is exactly the kind of thing worth mapping before you view, not after you’ve fallen for a unit. You can get a free valuation and affordability read here so you’re shopping with a real budget, not a hopeful one. If you’re an HDB owner planning to move up, pair this with my guide on upgrading from HDB to condo.

Figures and rules as at June 2026, per MAS. TDSR (55%), MSR (30%), the LTV limits and the medium-term stress-test rate (4%) are set by the authorities and can change — confirm current rules before committing.