What is the TDSR?
The Total Debt Servicing Ratio (TDSR) is a framework that safeguards borrowers against over-borrowing for their property purchase(s). In a nutshell, the TDSR limits the amount borrowers can spend on debt repayments to 60 percent of their gross monthly income. All banks and financial institutions in Singapore must adhere to the TDSR.
How will the TDSR affect your home loan?
The maximum TDSR is 60% of an individual’s fixed monthly income. Any existing debt obligations will count against this and reduce the maximum amount you can borrow. These debt obligations include: