I assume you're a Canadian citizen? (If not you will have to apply from within Canada, and then the question of living together becomes more complicated).
Is this a first marriage for you both?
Do you pay rent/share expenses with your parents? Do you have some kind of written agreement with them (that shows both of you)? You can also get a letter from your parents that you are both living with them and contributing to expenses, etc. Add a letter of explanation (as per the 'if you did not check two boxes' instructions), emphasizing that all of these 'joint' things that are normal in Canada are not possible in UAE.
At any rate, if you look at the section 7, you have been married for more than two years, have a child together, and are living together - and if a first marriage - you will be in a lower risk category (or at least lower documentation required).
If the rest of your application is in order and no significant concerns otherwise, I wouldn't worry too much.
Note: you say your spouse is from a sanctioned country; don't know the country specifics obviously, but presumably this may be a country with more significant security concerns, many of which have longer approval / processing times - it might be quite a bit longer.