Estimate your maximum home loan using the 55% TDSR cap and, for HDB/EC, the 30% MSR cap — stress-tested at the 4% medium-term rate floor.
TDSR (Total Debt Servicing Ratio) limits all your monthly debt obligations — including the new mortgage, car loans, credit card minimums and personal loans — to 55% of gross monthly income. It applies to all property loans. MSR (Mortgage Servicing Ratio) additionally caps the property loan alone at 30% of income, but only for HDB flats and Executive Condominiums; for HDB/EC the lower (MSR) limit usually binds.
Banks compute the maximum loan by converting your affordable monthly payment into a principal at the 4% medium-term stress rate (5% for non-residential), not your actual package rate. The maximum loan is also capped by the Loan-to-Value limit (up to 75% of property value for a first bank loan), so the binding constraint is the lowest of TDSR, MSR and LTV.