TDSR Singapore: The 55% Limit, the 4% Stress Test and the Income Each LinkTown Unit Needs

For most buyers at LinkTown Residences (Hougang Central Residences), the size of the loan will be decided less by the price of the unit than by one ratio: the Total Debt Servicing Ratio, or TDSR. It is the rule that caps how much of your income can go to debt, and it is tested at an interest rate far above what banks are charging today. This guide explains how it works and what it means for each indicative unit type.

The rule in one line

Your total monthly debt repayments, including the new property loan, cannot exceed 55% of your gross monthly income. If they would, the bank has to lend you less. That is it. Everything else is detail on how “debt” and “income” are measured.

The stress test rate: 4%

When a bank works out the monthly instalment on your new home loan for TDSR purposes, it does not use your actual package rate. MAS requires it to use the higher of:

• a 4% medium-term interest rate floor for residential property loans, or
• the loan’s “thereafter” rate, the rate after any promotional period.

The floor was raised to 4% from 30 September 2022, and MAS’s explainer still shows 4% for residential property (5% for non-residential) as of September 2026 (MAS, Calculating TDSR). With advertised packages around 1.4%–1.5% in September 2026, the stress rate is well above what you would actually pay. That gap is intentional: a 30-year loan will live through rate cycles.

What counts as debt

All your monthly obligations go into the 55%, not only the new mortgage:

• other property loans, including an existing HDB loan (see HDB loan vs bank loan)
• car loans
• personal loans, study loans and renovation loans
• credit card and credit line obligations

Each S$1,000 of other monthly debt reduces your room for the mortgage by the same amount, and raises the income you need by about S$1,820 (S$1,000 ÷ 0.55). Paying off a car loan before applying can matter more than a raise.

What counts as income

Fixed monthly salary counts in full. MAS requires a haircut of at least 30% on:

• variable income such as bonuses, commissions and allowances
• rental income

So an average of S$2,000 a month in commission would count as at most S$1,400. The self-employed are usually assessed on Notices of Assessment, with the same haircut on variable income. Some banks also let you count eligible financial assets towards income, under conditions and haircuts; ask your bank how it treats them.

Illustrative income needed for each LinkTown unit type

Unit type (indicative size)	Price at S$2,500–2,600 psf	75% loan	Stress-test instalment at 4%	Gross monthly income needed
1-bedroom + study (506 sq ft)	S$1.27m–1.32m	S$949k–987k	S$4,530–4,710	S$8,240–8,560
2-bedroom premium (678 sq ft)	S$1.70m–1.76m	S$1.27m–1.32m	S$6,070–6,310	S$11,030–11,480
3-bedroom premium (1,066 sq ft)	S$2.67m–2.77m	S$2.00m–2.08m	S$9,540–9,920	S$17,350–18,040
4-bedroom premium (1,496 sq ft)	S$3.74m–3.89m	S$2.81m–2.92m	S$13,390–13,930	S$24,350–25,320
5-bedroom premium (1,679 sq ft)	S$4.20m–4.37m	S$3.15m–3.27m	S$15,030–15,630	S$27,330–28,420

Income for joint buyers is combined. Single buyers are assessed on one income; see can a single buy a condo. A couple earning S$6,000 and S$6,000 would meet the 2-bedroom figure on these assumptions. If they had a S$1,000 car loan, the income needed for the same unit would rise to about S$12,850.

The income needed is not the whole story. You also need the 25% down payment and stamp duty, covered step by step in how much condo you can afford. And if your income falls short, you can still buy by borrowing less and putting in more cash or CPF.

Age, tenure and the lower LTV

The table assumes a 30-year loan. MAS caps the loan at 75% of the price for a first housing loan only if the tenure is 30 years or less and the loan ends by age 65. Beyond either, the limit falls to 55%, with a minimum 10% cash down payment (MAS, Loan tenure and LTV limits).

A 40-year-old who wants to keep the 75% limit would need to finish by 65, so a 25-year tenure. On the same 2-bedroom loan of S$1,271,250, the stress instalment rises to about S$6,710, and the income needed to about S$12,200. At 20 years it is about S$14,010. Older buyers often end up choosing between a shorter tenure and a smaller loan.

TDSR vs MSR

You may also hear about the Mortgage Servicing Ratio (MSR). It caps property loan repayments at 30% of income, but only for HDB flats and for executive condominiums bought before the minimum occupation period ends (MAS, MSR and TDSR rules). A private condo such as LinkTown Residences is tested under TDSR only. If you are comparing it with an EC, see EC vs private condo.

Before you book

• Get an in-principle approval so you know your real limit, including how the bank treats your variable income.
• List every monthly debt, including loans you have co-signed for others and credit lines you rarely use.
• Check your age and tenure. They can change the loan limit more than your income.
• Keep a buffer. The 4% test shows you can pay at 4%, not that you would be comfortable.

For how package rates compare with the stress rate, read home loan rates in Singapore. Once the developers release prices, rework the table with actual figures from the price list and final sizes from the floor plans. The Hougang Central Residences launch is expected in early 2027, and UOL’s August 2026 results guide a 2H 2027 launch. Verify with MAS and your bank.

The loan calculator applies the same 55% TDSR and 4% stress-test rate to your own income.

Register to get LinkTown Residences prices and unit sizes as soon as they’re released.

Frequently asked questions

What is TDSR in Singapore?

The Total Debt Servicing Ratio caps your total monthly debt repayments, including the new home loan, at 55% of your gross monthly income. Banks must apply it to property loans. Verify with MAS and your bank.

What interest rate do banks use for the TDSR stress test?

For residential property loans, MAS requires banks to use the higher of a 4% medium-term interest rate floor or the loan’s thereafter rate. The 4% floor has applied since 30 September 2022.

Does MSR apply to a private condo?

No. The 30% Mortgage Servicing Ratio applies to loans for HDB flats and for executive condominiums bought before the end of the minimum occupation period. Private condos are assessed under TDSR.

How much income do I need for a 2-bedroom at LinkTown Residences?

Illustratively, about S$11,000 to S$11,500 a month with no other debts, based on an indicative 678 sq ft at analysts’ S$2,500 to S$2,600 psf, a 75% loan over 30 years and the 4% stress rate. No prices have been released yet.