Purchasing Residential Property

Primary Market (New Launch)Secondary Market (Resale)
Basic Checks and Information
Option to Purchase (OTP)
Sale & Purchase Agreement
Taking Possession and Moving In
Completion of the Sale

TDSR was introduced by the The Monetary Authority of Singapore (MAS) on 28 June 2013.

The TDSR is an affordability “ratio” that’s meant to prevent you from purchasing a property that’s well beyond your financial means. It’s also meant to curb property speculation so that Singapore doesn’t experience a subprime meltdown.

The TDSR limits the amount of money banks and other Financial Institutions (FIs) can lend you – which is 60% of your gross monthly income minus all of your outstanding debts.

The outstanding debts that the TDSR will take into account include:

– Credit card balances (including “instalment plans” with retailers)
– Student loans
– Personal loans
– Car loans
– Other home loans (if applicable)

While being able to borrow up to 60% of your gross monthly income may sound like a lot, the reality is that most of us carry outstanding debts that will affect how much we can borrow.

*Note on variable income: If you’re a variable income earner, the TDSR framework requires you to take a 30% “haircut” on your average monthly income. Variable income items such as bonuses or allowances can also be factored in.

Stamp DutyTotal Debt Servicing Ratio (TDSR)
Buyer Stamp Duty (SD)
Additional Buyer Stamp Duty (ABSD)
Seller Stamp Duty (SSD)

TDSR was introduced by the The Monetary Authority of Singapore (MAS) on 28 June 2013.

The TDSR is an affordability “ratio” that’s meant to prevent you from purchasing a property that’s well beyond your financial means. It’s also meant to curb property speculation so that Singapore doesn’t experience a subprime meltdown.

The TDSR limits the amount of money banks and other Financial Institutions (FIs) can lend you – which is 60% of your gross monthly income minus all of your outstanding debts.

The outstanding debts that the TDSR will take into account include:

– Credit card balances (including “instalment plans” with retailers)
– Student loans
– Personal loans
– Car loans
– Other home loans (if applicable)

While being able to borrow up to 60% of your gross monthly income may sound like a lot, the reality is that most of us carry outstanding debts that will affect how much we can borrow.

*Note on variable income: If you’re a variable income earner, the TDSR framework requires you to take a 30% “haircut” on your average monthly income. Variable income items such as bonuses or allowances can also be factored in.