Quick Answer
Your borrowing limit is set by whichever check is tighter. With S$8,000 monthly income and S$500 of other debt, this HDB bank-loan example is capped by MSR at about S$454,686. That uses a 4% test rate over 25 years. It is an estimate, not a loan offer. Lenders also check property value, age, tenure and credit record.
The Useful Number: With S$8,000 monthly income and S$500 of other debt, MSR caps this HDB bank-loan example at about S$454,686.
What Is The Difference Between A Borrowing Limit And A Budget?
The Total Debt Servicing Ratio (TDSR) caps all your monthly debt payments as a share of gross income. The Mortgage Servicing Ratio (MSR) caps mortgage payments for HDB flats and Executive Condominiums where it applies. For an HDB bank loan, both apply and the tighter one sets the limit.
The result is a servicing limit, not a loan offer or a comfortable budget. A lender also checks property value, your age, loan tenure and credit record.
How Much Can An S$8,000 Household Income Borrow?
Say you earn S$8,000 a month before deductions (gross income), pay S$500 a month on other debts and want a 25-year bank loan for an HDB flat. You enter a 3% rate, but the calculator assesses repayment capacity at the 4% floor (the minimum test rate), not a quoted mortgage rate.
TDSR allows 55% of income less other debt, or S$3,900 a month, and MSR 30% of income, or S$2,400, so MSR is tighter and the estimated loan is S$454,686. If your other debts rise enough, TDSR becomes the tighter limit.
- Gross Monthly Income: S$8,000
- TDSR: 55% Less S$500 Debt: S$3,900/mth
- MSR: 30% Of Income: S$2,400/mth
- Lower Of The Two (MSR): S$2,400/mth
- Loan At 4% Over 25 Years: S$454,686
Data as of . Source: MoneySense — property borrowing limits; HDB — housing loan from HDB; HDB — sustainable property-market measures.
Try Your Numbers
How Much Could Your Income Borrow?
Uses a 25-year bank loan for an HDB flat, as in the example. Rates below 4% are tested at the 4% floor.
Estimated Loan Limit
S$454,686
- TDSR Allowance
- S$3,900/mth
- MSR Allowance
- S$2,400/mth
Rough estimate. See the full tool for assumptions.
Why Can The Approved Amount Be Lower?
The calculator does not apply loan-to-value (LTV) limits, which cap the loan as a share of the price, age rules, haircuts on variable income such as bonuses, or a lender’s credit check. For private property it drops MSR; for an HDB loan it uses a different test.
Do not stretch the tenure just to raise the loan shown. A longer loan costs more interest and may hit age or LTV limits this tool does not apply.
What Else Belongs In The Purchase Budget?
Compare the loan estimate with your cash and usable CPF, then add stamp duty, legal costs, renovation and a buffer. Keep an emergency fund outside the purchase money.
Get an HDB Flat Eligibility letter or a bank’s in-principle approval before you commit, and recheck your budget at a higher rate.
Quick Check
Three statements from this guide. Tap True or False to check what you have read. Nothing is saved.
Card 1 Of 3
With S$8,000 income and S$500 of other debt, MSR is the tighter limit for this HDB bank loan.
Why? Card 1 Of 3
MSR is 30% of income, while TDSR is 55% of income less other debt. If your other debts rise enough, TDSR becomes the tighter limit.
Card 2 Of 3
The calculator works out your loan at the 3% rate you enter.
Why? Card 2 Of 3
The 4% test rate is not a quoted mortgage rate. Your actual instalments depend on the loan package.
Card 3 Of 3
The S$454,686 estimate is the amount a bank will lend you.
Why? Card 3 Of 3
It leaves out loan-to-value limits, age rules, haircuts on variable income and a lender’s credit check. An HDB Flat Eligibility letter or a bank’s in-principle approval shows what you can borrow.
Your Score
Try It With Your Numbers
Open the calculator with this guide’s example filled in. Then change the numbers to match your situation.
Open TDSR & MSR Borrowing Calculator →Frequently Asked Questions
What Is The Difference Between TDSR And MSR?
TDSR caps all your monthly debt payments as a share of gross income.
MSR caps mortgage payments for HDB flats and Executive Condominiums where it applies. For an HDB bank loan, both checks apply, and the tighter one sets the limit. If you pick private property, this calculator drops MSR.
Try TDSR & MSR Borrowing Calculator →Why Does The Calculator Use 4% When My Loan Rate Is Lower?
In the example, you enter a 3% loan rate, but the calculator assesses repayment capacity at the 4% floor.
The 4% test rate is not a quoted mortgage rate. Your actual instalments depend on the loan package.
Try TDSR & MSR Borrowing Calculator →When Does TDSR Become The Tighter Limit?
In the example, TDSR allows 55% of income less other debt, or S$3,900 a month.
MSR allows 30% of income, or S$2,400 a month. MSR is tighter there. If your other debts rise enough, TDSR becomes the tighter limit instead.
Is The Result The Amount A Bank Will Lend Me?
Not always.
The calculator does not apply loan-to-value limits, age rules, haircuts on variable income or a lender’s credit check. So the approved amount can be lower. An HDB Flat Eligibility letter or a bank’s in-principle approval shows what you can actually borrow.
Try TDSR & MSR Borrowing Calculator →Does A Longer Tenure Increase How Much I Can Borrow?
A longer tenure can raise the loan shown, but do not stretch it just for that.
A longer loan changes the total interest you pay. It may also hit age or loan-to-value limits that this tool does not apply.
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Sources & Assumptions
- MoneySense — Property Affordability And Servicing Limits ↗
- HDB — Property-Loan Assessment Rate Floors ↗
Sources checked 12 October 2026. These are examples only. Check the stated assumptions and limits before you use a result.
Rough servicing limit only, not a loan offer. It leaves out loan-to-value limits, age rules, income adjustments, eligibility and lender approval.