TDSR Explained: How Much Can You Borrow for a New Launch Condo?
What TDSR means, how banks calculate it step by step (income haircuts, debts, the 4% stress test) and how much it lets you borrow for a new launch condo such as LinkTown Residences.
TDSR is the rule that decides how much a Singapore bank can lend you, and it is often the real limit on your budget, not the price list. If you are planning to buy a new launch such as LinkTown Residences (also searched as Hougang Central Residences), understanding TDSR before you visit a showflat saves a lot of disappointment on booking day.
TDSR meaning: what the ratio measures
The TDSR ratio compares what you owe each month with what you earn each month:
TDSR = total monthly debt obligations ÷ gross monthly income × 100%
It was introduced by the Monetary Authority of Singapore (MAS) to stop borrowers from over-stretching. It applies to any individual taking a property loan, or a loan secured on property, from a bank or other financial institution. If your TDSR would exceed 55%, the bank has to cut the loan until it fits.
TDSR sits alongside the loan-to-value (LTV) limit. LTV caps the loan at a percentage of the property’s price or valuation (75% for a first housing loan with a tenure of up to 30 years that ends by age 65). You can borrow the lower of the two. For most buyers of a S$1.5m–S$3m condo, TDSR is the one that bites.
Calculating TDSR step by step
Step 1: work out your recognised income
Banks don’t take every dollar of income at face value. Under MAS rules:
- Fixed salary counts in full.
- Variable income (bonuses, commissions, allowances) is averaged over the past 12 months and gets a haircut of at least 30%, so at most 70% counts.
- Rental income also takes at least a 30% haircut, and must be backed by a stamped tenancy agreement with at least six months left to run.
- Financial assets such as cash and investments can be turned into “income” by spreading them over 48 months. Liquid assets pledged with the bank for at least four years can count with no minimum haircut; unpledged assets take at least a 70% haircut.
Step 2: list every monthly debt
All outstanding obligations count: existing property loans, car loans, student loans, renovation loans, credit card minimums and other secured or unsecured facilities, including revolving credit. Many buyers forget small items; together they can knock tens of thousands off the loan.
Step 3: add the new home loan at the stress-test rate
The bank calculates the new mortgage instalment at the higher of 4% or the package’s thereafter rate, over your intended tenure. Even if your package starts well below 4%, the test uses 4%. This builds in a buffer in case rates rise.
Step 4: compare with 55%
If total debts ÷ recognised income is 55% or less, you pass at that loan amount. If not, the loan is reduced.
Worked example: a couple eyeing a two-bedroom
Take a couple with a combined fixed salary of S$9,000 a month, S$3,000 a month in average variable income, and a S$600 car instalment. They like an illustrative S$1.70m two-bedroom (based on analysts’ expected ~S$2,500 psf and an indicative 678 sq ft layout; no official prices yet), which needs a 75% loan of S$1,275,000.
| Item | Monthly figure |
|---|---|
| Fixed income | S$9,000 |
| Variable income after 30% haircut (S$3,000 × 70%) | S$2,100 |
| Recognised income | S$11,100 |
| TDSR cap (55%) | S$6,105 |
| Less car loan | −S$600 |
| Available for the mortgage | S$5,505 |
| Maximum loan at 4% over 30 years | ~S$1,153,000 |
The shortfall against the S$1,275,000 loan they need is about S$122,000. Their options:
- Pay more upfront in cash or CPF, if they have it.
- Clear the car loan first. Without the S$600 instalment, the 4% test supports about S$1,278,700, just enough.
- Pledge or show funds. Pledging S$200,000 in cash for four years adds roughly S$4,167 a month of recognised income (S$200,000 ÷ 48). Showing the same funds unpledged adds only about S$1,250, because of the 70% haircut.
- Choose a smaller unit, such as a 1BR + Study, where the illustrative loan is about S$952,500.
You can test your own numbers with our mortgage calculator for Singapore buyers, which includes a maximum-loan table by income, or the loan tool on the LinkTown Residences calculators page.
TDSR vs MSR vs LTV
| Rule | What it caps | Applies to a private condo? |
|---|---|---|
| TDSR (55%) | All monthly debts as a share of income | Yes |
| MSR (30%) | Housing loan repayments as a share of income | No; it applies to HDB flats and ECs bought from developers |
| LTV (75% / 45% / 35%) | Loan as a share of price or valuation, by number of outstanding housing loans | Yes |
Because MSR doesn’t apply to private condos, upgraders sometimes find they can borrow more for a condo than they expected, provided their other debts are low. The trade-off is that private property needs a bank loan; HDB loans aren’t available.
TDSR for HDB upgraders
If you still have an HDB loan when you apply for a condo loan, that instalment normally counts in your TDSR, and the new loan may fall under the lower 45% LTV tier for a second housing loan. MAS allows banks to exclude an existing property loan from the TDSR calculation if you show you are committed to selling that property, for example through the appropriate HDB undertaking or a sale agreement. Banks apply this case by case, so ask early. Our HDB upgrader guide covers the sell-first vs buy-first decision in detail.
TDSR in Singapore: exemptions worth knowing
- Refinancing an owner-occupied home is exempt from TDSR, though you must still pass the bank’s credit assessment.
- Refinancing an investment property above the threshold is possible only with a debt reduction plan (repaying at least 3% of the balance over up to three years).
- Bridging loans repaid within six months are exempt.
How to improve your TDSR before launch
- Pay off or reduce small debts such as credit cards and personal loans.
- Avoid taking on a new car loan in the months before you book.
- Consider adding a co-borrower with income, bearing in mind ABSD is based on the buyer profile with the highest rate.
- Keep documentation for variable income tidy: 12 months of payslips or tax assessments help.
- Get an In-Principle Approval (IPA) from a bank before booking day, so you know your number.
For the full loan process, from IPA to package choice, read our home loan guide for new launch condos. If you plan to use CPF for the down payment and instalments, see using CPF to buy a private condo, because CPF lowers your cash outlay but doesn’t change your TDSR.
Want a heads-up when indicative prices for LinkTown Residences are released, so you can run TDSR against real numbers? Register your interest and we’ll keep you posted.
This is general information, not financial advice. Figures are illustrative and rounded. TDSR, LTV and income-recognition rules are set by MAS and applied by each bank, which may be stricter. Verify with MAS and your bank. Information as at Sep 2026.
