TL;DR — The Short Answer
- On a $6,000/month gross salary with no existing debts, you can borrow up to ~$630,000–$660,000.
- With a 25% down payment, that means condos priced up to ~$840,000–$880,000 are within reach.
- Existing car loans, personal loans, or credit card debt will reduce this significantly.
Step 1: What is TDSR and why does it matter?
The Total Debt Servicing Ratio (TDSR) is a MAS rule that caps your total monthly debt repayments at 55% of your gross monthly income. This includes your new mortgage plus any existing debts (car loan, personal loan, student loan, credit card minimums).
If you have a car loan of $800/month, your maximum mortgage repayment drops to $3,300 − $800 = $2,500/month.
Step 2: How much can you borrow?
Assuming a 30-year loan at 4% interest (the current stress-test rate banks use), here's what different monthly repayments translate to in loan quantum:
| Monthly repayment | Loan quantum (30yr @ 4%) | Condo price (75% LTV) |
|---|---|---|
| $3,300 (no other debts) | ~$690,000 | ~$920,000 |
| $2,800 (car loan $500/mo) | ~$585,000 | ~$780,000 |
| $2,200 (car + personal loan) | ~$460,000 | ~$615,000 |
* Based on 30-year tenure, 4% stress-test rate, 75% LTV (first property, Singapore citizen). Figures are indicative.
Step 3: What about the down payment?
For a private condo, the bank can lend up to 75% of the purchase price (LTV limit). You need to fund the remaining 25% yourself — and at least 5% must be in cash (the rest can come from CPF OA).
On an $800,000 condo: you need $40,000 cash + up to $160,000 from CPF. Make sure your CPF OA has enough — check your balance on the CPF website before making any offer.
Step 4: Don't forget the other costs
The purchase price is just the start. Budget for these additional costs on an $800,000 condo:
Real example: The Lims on $6k/month
Scenario: Single buyer, SC, $6,000/month gross, $500/month car loan, CPF OA balance of $80,000, cash savings of $60,000.
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