In April the Canadian Government announced restrictions for any borrower who needs to have their mortgage backed by Canada Mortgage & Housing Corp (CMHC). These new rules caused some confusion - here's what they really mean:

Whether you are a first time home buyer, or considering the purchase of your dream home, no matter what your circumstance, you can still purchase with 5% down payment.　

If you are buying a principal residence, and/or a second home, qualifying rates are still quite low if you choose a mortgage term of 5 years or longer. (Need to talk to a mortgage professional? Call me - I work with several great ones.)

The minimum downpayment has not changed and is still 5% subject to qualifying. The downpayment can come from savings/investments such as RRSPs, gift from an immediate relative as well it can be borrowed from a line of credit or loan. The source of downpayment can come from any combination. For example, the house you've fallen in love with requires a downpayment of $15,000 (5% of $300,000) and you have $10,000 saved. The difference of $5,000 can be made up by way of a gift letter for $2,500 (thanks Mom and Dad) and $2,500 from a Cash Back Mortgage.

The requirement for the 20% down payment is only for investors purchasing rental/investment properties.　

Under special circumstances, some buyers can still qualify for zero percent down payment, although it is uncertain how long this will be available.