Here is a simple cheat sheet to see if you would qualify for a 5% down mortgage.
* The home will be your principal residence—i.e. no investment properties.
* The actual 5% sum should be from your own funds or a gift from a family member. You can still use credit cards and credit lines for the downpayment but higher CMHC fee applies.
* You can prove to your lender that you can cover the transactional closing costs on the real estate deal. So can pay the legal fees, land transfer costs, etc. without borrowing it.
* You must have good credit and a minimum of one year with your current employer. If you are a salaried worker, you only need to be off probation, don't need to be on the job for a year.
* The cost to pay the mortgage, your heat and hydro, the condo fees (if applicable) and property taxes cannot exceed more than 39% of your gross taxable income—this is your Gross Debt Service ratio, or the GDS. Plus, all your consumer debt, loans and housing-related payments cannot exceed 44% of your gross taxable income—this is your Total Debt Service ratio or the TDS.
Hope this help. If you have any questions please contact me. I'd happily help explain things further.