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Lowest Interest Rate
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as of 4 Sep 2026
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How much can you borrow with the revised income ceiling?
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If you've thought about buying a property, you might have heard about the term 'TDSR', or Total Debt Servicing Ratio.
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TDSR is a framework that is used to determine the maximum amount someone can afford when buying a home. Calculated using your gross monthly income and age, you'll be able to find out the maximum loan you are eligible for, along with your loan tenure.
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The framework was introduced by MAS to ensure that Singaporeans don't overstretch their finances. TDSR limits your total monthly loan repayments to 55% of your gross monthly income.
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The two main factors of TDSR
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| Factor | How it affects your loan |
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| Age | Age determines your maximum loan tenure. Subtract your current age from the maximum loan servicing age of 65, then compare the result with the maximum tenure: up to 35 years for private residential properties and 30 years for HDB flats. The shorter tenure applies. For example, a 25-year-old buying a private property can borrow for up to 35 years, while a 50-year-old can borrow for up to 15 years. | | Monthly Fixed Income | TDSR is capped at 55% of gross monthly income. With a gross monthly income of $8,000, total monthly loan obligations cannot exceed $4,400. This includes home, car, personal, and other loan repayments. |
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HDB and ECs vs Private Residentials
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When purchasing a HDB flat or an EC unit, different financing regulations apply compared with purchasing a private property. In addition to TDSR, banks use the Mortgage Servicing Ratio (MSR) to calculate your affordability.
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The main difference is that MSR is capped at 30%. This reduces the amount that can be used to service loan commitments and directly affects the maximum loan amount you can afford.
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With a gross monthly income of $8,000, monthly loan repayments under TDSR cannot exceed $4,400. Under MSR, only $2,400 can be used to service your property loan.
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On top of MSR, there is also an income cap for Singaporeans who want to purchase BTO flats or ECs, as well as those applying for CPF housing grants when buying a new resale flat.
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During the National Day Rally, it was announced that there was a change to the current income ceiling. Here's how it compares:
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Previous income ceiling
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| Category | Income Ceiling | Max. Loan | Max. Property Price |
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| HDB Families | $14,000 | $795,700 | $1,060,933 | | HDB Singles ≥ 35 years | $7,000 | $397,850 | $530,466 | | EC New Launch | $16,000 | $1,005,414 | $1,340,551 |
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New income ceiling
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| Category | Income Ceiling | Max. Loan | Max. Property Price |
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| HDB Families | $16,000 | $909,372 | $1,212,495 | | HDB Singles ≥ 35 years | $8,000 | $454,686 | $606,247 | | EC New Launch | $18,000 | $1,131,091 | $1,508,120 |
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Why does the increase matter?
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As household incomes have risen since the last adjustment in 2019, more Singaporeans may exceed the existing income ceilings while private housing may still be financially out of reach. Raising the ceiling helps ensure that public housing remains accessible to a broader group of middle-income households.
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For those who fell just above the income limit, the revision could also open up housing options or grants that they were previously ineligible for.
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However, greater eligibility does not necessarily mean you should maximise your borrowing capacity. Your financial profile and goals should still be the main factors in determining how much you are comfortable spending on your home.
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If the revised income ceilings have changed your housing options, our consultants can help you understand how much you can borrow and explore the financing options available to you.
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