Total Debt Servicing Ratio (TDSR) Calculator
Updated according to new Property Cooling Measure 2022 / 2023
Total Debt Servicing Ratio (TDSR) Calculator.
Total Debt Servicing Ratio (TDSR) Calculator
This Calculator will help to calculate your TDSR stats.
The User is required to input
- Monthly Income ( Lump Sump)
- Additional Monthly Income
- Pledge or Unpledged Deposit if Any ?
- Any Monthly Loan currently in service
What is Total Debt Servicing Ratio (TDSR)
Total Debt Servicing Ratio (TDSR) Calculator. When applying Mortgage Loan to Purchase Property in Singapore. Bank will access your credit profile & Financial History. One of the Criteria Singapore bank will access , is your Total Debt Servicing Ratio.
TDSR was introduced by the Singapore government during the Property hype of 2013 , in respond to overheated Property market.
Differ from other Cooling Measure , which serve as a temporary remedy to counter the overheated Property Market. TDSR is here to stay , and permanently set as a guide line & regulation when it comes to application of Mortgage loan.
The Total Debt Servicing Ratio (TDSR)
Base on Guideline , the maximum debt service ratio per Income is set to a limit of 60%.
Later was change to 55% on 16 December 2021
Meaning that , if you earn S$10,000 per month , the maximum Debt / Loan servicing Amount is limit to S$6000
When an individual apply for new mortgage loan, All existing Debt servicing monthly will be access:
- housing loans
- Student Loan
- Credit Card Loan
- Car Loan
- etc
Beside TDSR; Property Buyer will also need to comply to the Measure Below as well:
- Loan to Value Ratio, proportion amount of the Property Buyers are allow to borrow.
- Loan Tenure Rules , For HDB Capped to 30 Years , For Private Property Capped to 35 Years.
- Stress Test Interest . For Residential 3.5% , For Commercial Property 4.5%. (Stress Test Interest For Residential Property Was Change to 4.0% 16 December 2021 )
- Variable Income such as Freelancer , Self Employed , Business will get a hair cut . Only 70% of the accessed income taken into Consideration
- Guarantors, mortgagors, and borrowers are now effectively one and the same.
How is TDSR being Computed
TDSR = Total Debt Servicing monthly / Total Income Monthly
TDSR Calculation Example
Example 1
Alex is a Program Manager he earn a fixed Monthly Income of S$6000
His Monthly Car Loan and Credit Card Loan Are S$1000 and S$300 Respectively
Base on TDSR Regulation , Alex is only allow to use 60% of his income to service any loan . that make up to be 55/100 % X S$6000 = S$3300
After deducting Alex Monthly Loan Obligation S$3300 – S$1000 – S$300
Alex is left S$2000 to Service a Mortgage Loan if he were to apply for a Mortgage loan
Example 2
Michelle is a Freelance UI Designer she earn and Average Monthly income of S$4000
Her Monthly Car Loan and Credit Card Loan are S$900 and $200 Respectively
Based on TDSR Regulation her Monthly Income will take a 30% Cut from her Accessed Income 70/100 % X S$4000 = S$2800
Base on TDSR Regulation , Michelle is only allow to use 60% of the computed accessed income to service any loan . that make up to be 55/100 % X S$2800 = S$1540
After deducting Michelle Monthly Loan Obligation S$1540 – $1000 -S$300
Michelle is left S$240 to Service a Mortgage Loan if she were to apply for a Mortgage loan
Example 3
Joint Couple Brian and Claire
Brian is a Manager he earn a fixed Monthly Income of S$5000
Claire is a Piano Teacher earn a Fixed income of S$4000
Monthly Debt Obligation for both are Credit Card Loan S$500 , Car Loan S$1000
Base on TDSR Regulation , Only 60% of the Couple Combined Income is allow to use to Service any Loan ( S$5000 + S$4000 ) X 55/100 %= S$4950
After Deducting the Couple Monthly Loan Obligation S$4950 – S$1000 – S$500
The Couple is left S$3450 to Service a Mortgage Loan
Total Debt Servicing Ratio (TDSR) Exemptions
- Owner -occupiers considering to refinance the loan for their property. Existing Borrower which is an owner occupier looking to refinance Property loan will be exempted from TDSR.
- Borrower are allow to refinance investment property loans beyond the TDSR limit if the conditions listed below are fulfilled:
- Refinancing planning ,Borrower agree to commits debt reduction plan consist of a repayment of minimal 3% of the outstanding balance over (not more than 3 years) with specific financial institution,
- Financial institution’s credit assessment is fulfilled.
- Mortgage equity withdrawal loans (MWLs)TDSR not applicable for mortgage equity withdrawal loans (MWLs).The loans consist of fully paid up Property , where the Property Owner borrow from.TDSR will not apply for MWL , if the Loan Amount do not exceed 50% , when calculating the aggregation with other Loan Obligation compare to the Property
- Exceptional Cases refer Here
Check out Buyer Stamp Duty ABSD Calculator Here
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