Financing Options

Mortgage Servicing Ratio (MSR)

Definition:
The MSR limits how much of your gross monthly income can be used to repay property loans for HDB flats or ECs.

• MSR limit: 30% of your gross monthly income.

• Applies to:

  • New ECs bought directly from developers (considered semi-public housing).

  • HDB flats.

• Does not apply to:

  • Private condominiums or fully privatised ECs (after 10 years).

Formula:
MSR = Total monthly mortgage repayment (for HDB/EC) / Gross monthly income ≤ 30%

Example:
If your household earns $12,000/month, your maximum EC mortgage repayment cannot exceed:

• 30% x $12,000 = $3,600/month.
  This directly affects your maximum loan eligibility, since banks must size your EC loan such that the monthly instalment ≤ $3,600.

Total Debt Servicing Ratio (TDSR)

Definition:
The TDSR caps the portion of your income that can go toward all debt obligations combined — including property loans, car loans, personal loans, and credit card debts.

• TDSR limit: 55% of your gross monthly income (as per MAS).

• Applies to: all property purchases — HDB, EC, or private.

Formula:
TDSR = Total monthly debt repayments (all loans) / Gross monthly income ≤ 55%

Example:
If your monthly income is $12,000, your total debt commitments (property + other loans) cannot exceed:

• 55% x $12,000 = $6,600/month.
  So if you already have a car loan or credit card debt totaling $1,000/month, your EC mortgage cannot exceed $5,600/month.

Executive Condo

• ECs are financed with bank loans only (no HDB loans).

• The Loan-to-Value (LTV) ratio and Total Debt Servicing Ratio (TDSR) apply.

• Choice of Normal Payment Scheme (NPS) and Deferred Payment Scheme (DPS)