Dr Loan | Your Trusted Loan Partner
MSR & TDSR Guidance
Overcoming Regulatory Barriers in Singapore’s Lending Framework
Singapore’s Total Debt Servicing Ratio (TDSR) framework was introduced to ensure borrowers do not overextend their finances. Under this rule, your total monthly loan repayments cannot exceed 55% of your gross monthly income.
While TDSR is essential for responsible borrowing, it can also act as a major barrier for borrowers who:
- Have variable or non-traditional income
- Own multiple investment properties
- Are paying off business or personal loans
- Have substantial CPF liabilities
- Are nearing retirement or have income tapering off
If your loan application is rejected due to TDSR breach, it doesn’t mean financing is impossible – it means you need expert advisory to restructure your case.
How We Help with TDSR Challenges
Income Reclassification
- We identify income streams the bank may have excluded
- For example: foreign rental income, director fees, irregular bonuses
- We present them in an acceptable, verifiable format
Loan Restructuring
- Extend loan tenure to reduce monthly instalment
- Switch to interest-only structures
- Consolidate or refinance debts to reduce monthly obligations
Co-Borrower Analysis
- Adding a spouse or business partner with higher income
- Removing a low-income borrower to raise TDSR limit
CPF Optimization
- Reduce CPF liability impact by pre-paying or adjusting usage
- Restructure housing loan obligations across multiple owners
Special TDSR Considerations We Handle
- Property owners planning to buy a second or third home
- Clients with high variable income (freelancers, consultants)
- Individuals with strong net worth but low declared salary
- HDB upgraders impacted by MSR (Mortgage Servicing Ratio) and TDSR