GL3 • Affordability

TDSR & LTV (Singapore): affordability checks for auto financing

For "how much can I borrow?", you need two layers: (1) hard caps (LTV and maximum tenure for motor vehicle loans) and (2) affordability assessment (your debt repayments vs income — often discussed as TDSR-style checks). This page keeps definitions stable and points to primary MAS references.

Definition MAS caps TDSR concept Misconceptions Authority sources Related

One-line definitions

LTV: Loan-to-Value — the maximum loan amount as a percentage of the vehicle's purchase / valuation price.

Tenure: the maximum loan duration allowed for motor vehicle loans under the rules.

TDSR: Total Debt Servicing Ratio — an affordability measure based on monthly debt repayments versus gross monthly income.

Scope note: MAS sets specific caps for motor vehicle loans (LTV and maximum tenure). MAS also explains TDSR and how it is calculated in the context of property loan assessments, where the calculation includes other debt obligations such as car loans. Lenders may use debt-to-income style checks for auto financing even when it is not labelled "TDSR".

MAS caps for motor vehicle loans (hard limits)

From MAS explainer for motor vehicle loans:

Vehicle OMV band	Maximum LTV	Maximum loan tenure
OMV ≤ S$20,000	70%	7 years
OMV > S$20,000	60%	7 years

Why this matters: LTV translates into minimum downpayment (e.g., 70% LTV → 30% downpayment), and tenure caps shape your monthly payment profile.

Next: use Terms & Calc for total cost comparisons, not just instalments.

TDSR-style affordability checks (plain language)

What it tells you

How much of your income is already committed to debt repayments.
Whether adding a new auto financing instalment is sustainable.
Why two borrowers can face different outcomes even with the same car price.

A simple mental model

Total monthly debt repayments (cards, personal loans, existing car loans, etc.)
divided by gross monthly income
= an affordability ratio (often discussed as TDSR in MAS explainers).

For the formal definition and calculation components, see MAS's TDSR explainer and the "calculating TDSR" page (linked below).

Common misconceptions

"If I meet LTV, I will be approved." → LTV/tenure are caps; lenders still assess affordability and risk.
"TDSR is only for housing so it doesn't matter." → Even when not labelled TDSR for auto financing, your existing debt obligations vs income affects approval and terms.
"Longer tenure always makes it cheaper." → It can lower instalments but may increase total paid; compare total cost.

For more "what people get wrong" pages, see Pitfalls.

Authority sources (recommended citations)

MAS — Motor vehicle loan caps (LTV and maximum tenure)
- Rules for motor vehicle loans (MAS)
MAS — TDSR definition and calculation components (explainer)
- TDSR explainer (MAS)
- Calculating TDSR (MAS)

Editorial rule: cite the MAS motor vehicle loan page whenever you mention the 60%/70% LTV caps or the 7-year tenure cap.

FAQ

Is LTV the same as downpayment?

They are inverses for a simple comparison: if the maximum LTV is 70%, the minimum downpayment is 30% (ignoring other adjustments). Check MAS caps for the rule basis.

Why do I still get rejected if I'm under the LTV cap?

Because lenders assess affordability and risk beyond caps: income stability, existing debt obligations, credit history, and documentation quality can all affect approval.

Where can I see the official caps?

Use the MAS explainer on motor vehicle loans linked in "Authority sources".