Commercial Property Stamp Duty, TDSR & MSR — The 3 Rules That Decide How Much You Can Borrow for Property in Singapore 2026
Before you fall in love with a property listing, Singapore has three gatekeepers standing between you and your dream home or investment unit. Commercial stamp duty applies to non-residential purchases. TDSR caps your total borrowing at 55% of gross income. And MSR limits HDB and Executive Condo buyers to 30%. Fail any one of these three checks and the bank will reject your loan — no matter how high your salary is. This guide explains each rule with real examples and free calculators so you can check your borrowing power before you even speak to a property agent.
Understanding Commercial Property Stamp Duty in Singapore 2026 — BSD Rates for Shops, Offices, Industrial Units and Why ABSD Does Not Apply
If you are buying a shophouse in Tanjong Pagar, an office unit in one-north, a warehouse in Jurong, or a strata factory in Ubi, you are buying non-residential (commercial or industrial) property. The good news is that ABSD does not apply to non-residential property. You only pay BSD — and the BSD rates for non-residential properties can differ from residential rates.
For non-residential properties, BSD is calculated on the purchase price or market value (whichever is higher) using the same progressive structure as residential properties. The rates run from 1% on the first S$180,000 up to 5% on amounts above S$1.5 million. Notice the top rate is 5% for non-residential, compared to 6% for residential properties above S$3 million.
This is a major reason why many investors — especially foreigners who face 60% ABSD on residential property — prefer commercial and industrial units. A foreigner buying a S$2 million office unit pays only S$49,600 in BSD. The same foreigner buying a S$2 million condo would pay S$54,600 BSD plus S$1,200,000 ABSD = S$1,254,600 in stamp duty. The difference is staggering. Use the Commercial Property Stamp Duty Calculator to see the exact BSD for any non-residential purchase price.
SSD Still Applies to Commercial Property — The 3-Year Holding Period Rule
While ABSD does not apply to commercial property, SSD does. If you sell a commercial property within 3 years of buying it, SSD rates of 12%, 8%, or 4% apply — identical to residential SSD. Many commercial property flippers learn this the hard way. A S$1.5 million shophouse sold after 18 months incurs S$120,000 in SSD (8%). Always check the SSD Calculator before selling any property you have held for less than 3 years.
Understanding TDSR in Singapore 2026 — The MAS 55% Total Debt Servicing Ratio That Controls Every Property Loan
The Total Debt Servicing Ratio is the single most important number in Singapore property financing. Introduced by the Monetary Authority of Singapore (MAS) in 2013, TDSR limits your total monthly debt obligations to no more than 55% of your gross monthly income. “Total debt” means everything: your proposed mortgage payment, existing car loan, personal loans, credit card minimum payments, student loans, and any other recurring debt commitments.
Here is where most people get confused: TDSR is not just about the mortgage you are applying for. It is about all your debts combined. A person earning S$10,000 gross per month has a TDSR ceiling of S$5,500. If they already have a car loan (S$800), personal loan (S$400), and credit card minimum payments (S$200), their existing debt obligations are S$1,400. That leaves only S$4,100 for the new mortgage payment. At a stress-test interest rate of 4% over 25 years, that S$4,100 supports a mortgage of roughly S$775,000 — not S$1 million as many buyers assume.
The Stress Test Rate — Why Banks Use a Higher Rate Than Your Actual Mortgage Rate
MAS requires banks to stress-test your mortgage affordability at a rate higher than the actual rate you will be paying. For floating-rate mortgages (like SORA-linked loans), the stress-test rate is typically the prevailing rate plus a buffer of about 1.5% to 2%, or a minimum floor rate (whichever is higher). This means even if your actual mortgage rate is 3%, the bank calculates TDSR as if your rate were 4% or higher.
This stress-test is designed to ensure you can still afford the mortgage if interest rates rise. It is a conservative but prudent approach that has kept Singapore mortgage default rates among the lowest in the world. The TDSR Calculator applies the stress-test rate automatically so you see the same number the bank sees.
Understanding MSR in Singapore 2026 — The 30% Mortgage Servicing Ratio for HDB Flats and Executive Condominiums
MSR is the stricter cousin of TDSR, and it applies only to two types of properties: HDB flats (both BTO and resale) and Executive Condominiums (ECs) purchased directly from developers. MSR limits your monthly mortgage instalment to no more than 30% of your gross monthly income. Unlike TDSR, MSR only considers the mortgage payment — not your other debts.
A couple with a combined gross monthly income of S$8,000 has an MSR ceiling of S$2,400 for their HDB mortgage. At the HDB concessionary loan rate of 2.6% over 25 years, that S$2,400 monthly payment supports a loan of approximately S$540,000. If they are buying a S$600,000 resale flat, they need a down payment of at least S$60,000 (or more, depending on the LTV ratio).
Here is the critical detail: MSR and TDSR apply simultaneously to HDB and EC purchases. You must pass both. You could pass MSR (mortgage alone is under 30%) but fail TDSR (total debts including car loan exceed 55%). In that scenario, the bank will still reject the loan. This is why couples should use both the MSR Calculator and TDSR Calculator together before committing to a flat.
How These 3 Calculators Work — Commercial BSD, TDSR Limit and MSR Cap for Singapore Property Buyers
The Commercial Property Stamp Duty Calculator takes the purchase price of any non-residential property (shop, office, warehouse, factory, land) and computes the progressive BSD using the non-residential rate table. It shows the total BSD and effective rate, and confirms that ABSD does not apply.
The TDSR Calculator takes your gross monthly income, all existing monthly debt obligations, the proposed mortgage amount, interest rate, and loan tenure. It computes the TDSR percentage and shows whether you pass or fail the 55% limit. It also shows the maximum mortgage amount you can borrow given your current debts, so you know your ceiling before house-hunting.
The MSR Calculator focuses specifically on HDB and EC purchases. Enter your gross monthly income and proposed mortgage details. It computes whether the mortgage instalment alone stays within the 30% MSR limit, and shows the maximum loan you can take under MSR. It also flags whether TDSR might be the binding constraint instead of MSR.
3 Real Calculation Examples for Singapore — Foreigner Buying Office, Young Couple Buying HDB and Upgrader Buying Condo
Example 1: Foreigner Buying an Office Unit in CBD — S$2.5 Million
James, an Australian expat, wants to buy a strata office unit at Robinson Road for S$2.5 million. As a foreigner, he would face 60% ABSD on residential property, so he is buying commercial instead.
The stamp duty saving of S$1.5 million by choosing commercial over residential is why many foreigners invest in Singapore office and industrial property. Use the Commercial BSD Calculator and compare with the Commercial Yield Calculator.
Example 2: Young SC Couple Buying 4-Room BTO — Both TDSR and MSR
Li Wei (S$4,500/mo) and Xiao Mei (S$3,500/mo) are buying a 4-room BTO in Tengah for S$380,000 with an HDB loan at 2.6% over 25 years. Li Wei has an existing car loan of S$650 per month.
They pass both MSR and TDSR comfortably. But if Li Wei had a personal loan of S$1,500 on top of the car loan, TDSR would jump to 46.3% — still passing, but close to the limit. Use the TDSR Calculator to stress-test different debt scenarios.
Example 3: High-Earner Buying Second Condo — TDSR as the Binding Constraint
Rajan earns S$18,000 per month. He owns one condo with a remaining mortgage of S$4,200/mo. He wants to buy a second condo for S$2 million with a bank loan at 4% stress-test rate over 25 years.
Despite earning S$18,000, Rajan fails TDSR because his combined mortgage payments exceed 55%. He either needs to reduce the new loan amount (bigger down payment), settle the existing mortgage first, or find a co-borrower to increase the income denominator. Check the Home Loan Affordability Calculator to find the maximum loan that passes TDSR.
3 Expert Tips for Managing Commercial BSD, TDSR and MSR in Singapore
Consider Commercial Property to Avoid ABSD Entirely
If you are a PR or foreigner, or a SC buying your second property, commercial and industrial properties are ABSD-free. A strata office or shophouse can offer 3-5% net yields without the 20-60% ABSD that residential properties carry. However, commercial properties have shorter loan tenures (typically 15-20 years versus 30 years for residential), which means higher monthly payments. Factor this into your TDSR calculation using the TDSR Calculator.
Clear Your Smaller Debts Before Applying for a Mortgage
TDSR counts every recurring debt obligation. A S$300 credit card minimum payment and a S$500 personal loan reduce your borrowing capacity by approximately S$150,000 in mortgage quantum. Before applying for a property loan, aggressively pay down credit card balances, close any personal loans, and settle outstanding hire-purchase obligations. Use the Minimum Payment Calculator to see how long your debts will take to clear, and the DCP Calculator if consolidation makes sense.
Run Both MSR and TDSR Before Committing to an HDB or EC
For HDB and EC purchases, you must pass both tests simultaneously. Many first-time buyers check only MSR and assume they are approved, only to be rejected because a car loan or study loan pushed their TDSR past 55%. Always run the MSR Calculator and TDSR Calculator together. If either fails, you either need to increase your combined income (add a co-borrower), reduce your loan amount, or eliminate existing debts before applying.
16 Frequently Asked Questions About Commercial Stamp Duty, TDSR and MSR in Singapore
Does ABSD apply to commercial or industrial property in Singapore?
No. ABSD only applies to residential property. Commercial properties such as offices, shops, warehouses, and industrial units are exempt from ABSD. You only pay BSD at the non-residential progressive rates. This makes commercial property attractive for investors who already own residential property or are foreigners.
What is the TDSR limit in Singapore and how is it calculated?
The Total Debt Servicing Ratio limit is 55% of your gross monthly income, set by MAS. It is calculated by dividing your total monthly debt obligations (mortgage, car loan, personal loans, credit card minimum payments) by your gross monthly income. If the ratio exceeds 55%, the bank must reject your property loan application.
What is the difference between TDSR and MSR?
TDSR (55%) covers all debts and applies to all property types. MSR (30%) covers only the mortgage instalment and applies only to HDB flats and ECs purchased from developers. For HDB and EC purchases, both limits apply simultaneously. For private property, only TDSR applies.
Can I still get a property loan if I fail TDSR?
No. TDSR is a regulatory requirement enforced by MAS. Banks cannot approve a property loan that causes the borrower to exceed the 55% TDSR limit. Your options are to reduce the loan amount, clear existing debts, increase your income, or add a co-borrower to improve the ratio.
Does the car loan affect my TDSR for buying a property?
Yes. Your car loan monthly instalment is included in the TDSR calculation. A S$800 car loan payment directly reduces the mortgage amount you can borrow by approximately S$150,000 to S$190,000. Consider settling your car loan before applying for a property loan if it is close to being paid off.
What interest rate do banks use for the TDSR stress test?
For floating-rate loans (SORA-linked), banks typically use the prevailing rate plus a buffer or a minimum floor rate, whichever is higher. The stress-test rate is usually around 3.5% to 4%. This ensures borrowers can afford the mortgage even if interest rates rise significantly.
Does MSR apply to resale HDB flats or only BTO?
MSR applies to all HDB flat purchases, both BTO (new) and resale. It also applies to Executive Condominiums purchased directly from the developer before the privatisation date. After an EC is fully privatised (10 years from TOP), MSR no longer applies to subsequent purchases of that unit.
How much BSD do I pay on a S$1.5 million commercial property?
For a S$1.5 million non-residential property, the BSD is calculated progressively: 1% on first S$180,000 (S$1,800) + 2% on next S$180,000 (S$3,600) + 3% on next S$640,000 (S$19,200) + 4% on remaining S$500,000 (S$20,000) = S$44,600 total. The effective rate is about 2.97%.
Is SSD applicable to commercial property?
Yes. Seller Stamp Duty applies to commercial property sold within 3 years of purchase. The rates are the same as residential SSD: 12% (Year 1), 8% (Year 2), 4% (Year 3). After 3 years, SSD is zero.
Can variable income like bonuses and commissions count toward TDSR?
Yes, but banks typically apply a discount (haircut) to variable income. Fixed salary counts at 100%. Variable income such as bonuses, commissions, and overtime may be counted at 70% of the average over the past 12-24 months. Each bank has its own policy on variable income treatment.
What debts are included in the TDSR calculation?
All recurring monthly debt payments are included: existing mortgage payments, proposed new mortgage, car loan instalments, personal loan repayments, credit card minimum payments (typically 3% of outstanding balance), student loans, and any other fixed monthly obligations. One-time expenses and utility bills are not included.
Can a co-borrower help me pass TDSR?
Yes. Adding a co-borrower increases the gross monthly income denominator, which lowers the TDSR percentage. However, the co-borrower total debts are also added to the calculation. A co-borrower with a high income and no existing debts is ideal. A co-borrower with significant debts could actually make your TDSR worse.
What is the maximum loan I can get under MSR?
The maximum monthly instalment under MSR is 30% of gross monthly income. At S$8,000 income, that is S$2,400 per month. At a 2.6% HDB loan rate over 25 years, this supports a maximum loan of approximately S$540,000. At a bank rate of 4%, the maximum drops to approximately S$455,000. Use the MSR Calculator for your exact figure.
Does rental income count toward TDSR calculations?
Yes, but banks typically apply a 70% discount to rental income. If you earn S$3,000 per month in rental income, only S$2,100 is counted toward your gross income for TDSR purposes. Rental income must be supported by a valid tenancy agreement.
Are there any exemptions from TDSR?
MAS provides limited exemptions. Owner-occupied properties where the loan-to-value ratio does not exceed 50% may be exempt. Refinancing of existing property loans where the new loan does not exceed the outstanding balance is generally exempt. Properties purchased before the TDSR framework came into effect in June 2013 are grandfathered.
How does TDSR affect foreigners buying property in Singapore?
TDSR applies to everyone, including foreigners. However, foreigners may find it harder to meet TDSR if their income is earned overseas, as banks may apply additional discounts to foreign-sourced income. Some banks require at least 12 months of Singapore income history. The TDSR limit of 55% is the same regardless of nationality.
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Legal Disclaimer and Editorial Transparency
TDSR limit of 55% and MSR limit of 30% per Monetary Authority of Singapore (MAS) property loan regulations. BSD rates for non-residential properties per IRAS as of July 2026. Stress-test interest rates are indicative and may vary by bank. This guide is for informational and educational purposes only. It does not constitute legal, tax, or financial advice. Consult a qualified mortgage advisor or conveyancing lawyer for your specific situation. Published by MAFHH INTERNATIONAL LTD. Editorially independent. We do not collect any data you enter into our calculators.