A: There is a 5% down payment program in place that allows you to put down 5% of the purchase or appraisal price, whichever is less.
The 5% down payment must be from your own resources or a financial gift from an immediate relative. You also have to show that you are able to cover closing costs of 1.5% of the purchase price
GDSR: Your maximum gross debt service ratio (GDSR) cannot exceed 32%. This means your principal, interest, property taxes and heating costs cannot exceed 32% of your gross income.
TDSR: Your maximum total debt service ratio (TDSR) cannot exceed 40%. This means your principal, interest, property taxes, heating costs and monthly obligations including loans and credit cards cannot exceed 40% of your gross income. The mortgage loan insurance premium can be added onto the mortgage or paid separately. Your credit history must be in good standing.