Loans
Mortgage Servicing Ratio (MSR)
Definition
A regulatory cap restricting housing loan payments for HDB flats to a maximum percentage of monthly gross income.
Key Takeaways
- MSR caps HDB flat mortgage payments at 30% of the borrower's gross monthly income.
- Applies specifically to loans for HDB flats and new Executive Condominiums (ECs).
- Only counts the property mortgage payment itself, excluding other personal debts.
- Must be satisfied alongside the 55% TDSR limit for financial institution loans.
Detailed Explanation
The Mortgage Servicing Ratio (MSR) is an additional debt-servicing cap that applies specifically to housing loans for HDB flats (new BTOs and resale flats) and new Executive Condominiums (ECs) in Singapore. It limits the monthly mortgage repayment installment to a maximum of 30% of the borrower's gross monthly income, making it a stricter filter than the general TDSR.
Unlike TDSR, which covers all debt obligations, MSR only looks at the property loan repayment itself. Borrowers must satisfy both MSR (30%) and TDSR (55%) requirements to qualify for an HDB loan or bank loan for public housing.