What is Total Debt Servicing Ratio (TDSR) and how it affects my future loans?

TDSR - Total Debt Servicing Ratio

​

The maximum debt you can take on as a percentage of your income.

​

Not more than 60% of your income can be used to pay debt. Mortgage, Loans, etc.

​

So if right now you're making 100k a year and your existing TDSR is 50%, you can only take up another 10k/yr in loan repayment.

​

For a 2% mortgage interest on a 30 year loan tenure, you cannot borrow more than $225k.

​

For a 6% interest on a 10 year loan tenure, you cannot borrow more than $75k.

​

Thus if you cannot borrow the money for your purchase, you'll have to pay more using cash.