What is Total Debt Servicing Ratio ( TDSR )
Since 2010, government implemented the TDSR to restrict the individual or household total loan amount, the latest TDSR has been lower to 55% from 60% effective from 16th Dec 2021. The TDSR calculation is inclusive of your current total monthly repayment for property loan, Car loan, Credit card and unsecured loan etc.
Calculation for TDSR :
Maximum Repayment:
Monthly Income $8,000 x 55% = $4,400
Current monthly repayment : $2,500
Remaining available maximum repayment :
$4,400 - $2,500 = $1,900