Maximum Loan Eligibility Calculator TDSR Singapore

  • November 19, 2022
  • Eligibility Calculator TDSR Singapore Using this calculator, you may determine your Maximum Loan Eligibility. The Monetary Authority of Singapore established the Total Debt Servicing Ratio (TDSR) in 2013.

    This methodology is intended to ensure that borrowers’ borrowings are not excessively leveraged. The TDSR states that borrowers can borrow up to 60% of their disposable income after deducting other personal loans such as credit card instalments and auto loans.

    For example, if a borrower earns $6,000 per month and has a $1,000 vehicle loan obligation, the income utilised to calculate maximum loan eligibility is ($6,000 – $1,000) * 60% = $3,000. Maximum Loan Eligibility Calculator TDSR Singapore

    As Per Official Details by TDSR Site

    TDSR Calculation To Check Eligibility Calculator TDSR Singapore

    The MAS rules establish the minimal standards for calculating a borrower’s total debt servicing ratio (TDSR). Financial institutions (FIs) can employ more conservative methods as long as they follow MAS regulations. Maximum Loan Eligibility Calculator TDSR Singapore

    Situations in which Monthly Loan Repayments Can Be Ignored for Maximum Loan Eligibility Calculator TDSR Singapore

    In some circumstances, if a borrower has an existing residential property loan and is taking out a second loan to buy a property, their monthly loan obligations for the existing property can be removed from the TDSR calculation.

    The borrower must meet the following conditions in order for this exclusion to apply:

    Existing propertyBorrower needs to provide
    A HDB flatAn Executive Condominium (EC) and the minimum occupation of the EC has not expiredBoth these documents:A copy of a signed undertaking to the HDB committing to complete the sale of their current property within the period stipulated in the undertaking.A written declaration that they will take steps, in accordance with the signed undertaking, to sell their current property.
    An EC and the minimum occupation period of the EC has expiredA private propertyBoth these documents:A sale and purchase agreement signed by both the borrower (as the seller) and the buyer of the existing property.A certificate from IRAS showing that stamp duty has been paid on the signed agreement.
    A HDB flat that is being soldA letter from the HDB approving the sale of the flat.
    Maximum Loan Eligibility Calculator TDSR Singapore

    TDSR Formula To Use Eligibility Calculator TDSR Singapore

    To calculate a borrower’s TDSR, use the following formula:

    (Borrower’s total monthly debt obligations / Borrower’s gross monthly income) x 100%

    Monthly Debt Obligations (TDSR Numerator)

    Monthly debt includes all outstanding debt obligations:

    • Property-related loans, including the loan being applied for.
    • Car loans.
    • Student loans.
    • Renovation loans.
    • Credit card loans.
    • Any other secured or unsecured loans, including revolving loans.

    FIs should calculate and confirm these obligations by:

    • Collecting supporting documents from the borrower.
    • Checking with the credit bureau.

    Calculating Monthly Debt Obligations

    When calculating the monthly interest payable, FIs should base their calculation on a medium-term interest rate.

    The medium-term interest rate should be applied solely to the property purchase loan or loan backed by property under application by FIs. It should not be applied to all mortgages (including existing ones).

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