Short answer
No. Mortgage approval and legal eligibility to purchase are separate. The federal prohibition is extended to January 1, 2027, subject to its definitions and exemptions. An Ontario lawyer should confirm the buyer, property and exemption before the offer becomes firm.
The client problem behind the question
A buyer receives a lender preapproval and assumes the lender has also confirmed every federal ownership restriction and provincial tax consequence.
What the official guidance establishes
Finance Canada announced that the Prohibition on the Purchase of Residential Property by Non-Canadians Act would continue until January 1, 2027. Regulations contain exemptions and definitions that can change the result.
Where the answer can change
Citizenship, permanent residency, work authorization, time in Canada, spouse status, property type, location and development purpose may matter. A broker should not give a legal exemption opinion, and a lender approval does not replace one.
A practical Ontario example
Illustration only: A work-permit holder may qualify for an insured mortgage but still needs the lawyer to confirm whether a regulatory exemption permits the specific purchase. The same buyer may also face Ontario NRST.
What to do before committing
Before signing, send the lawyer immigration documents, ownership structure, property address and intended use. Include a legal-review condition if eligibility is uncertain.
Questions Rajiv would ask
- What deadline, condition or closing problem must be solved?
- Which facts are confirmed by original documents and which are still assumptions?
- Which law, insurer rule or lender policy applies to this exact transaction?
- What happens to the cash requirement and monthly payment if the first option fails?
- What is the practical route back to lower-cost financing, if temporary financing is used?
Rajiv’s broker perspective
A newcomer file should be separated into six decisions: legal ability to purchase, Ontario tax, immigration status, income, credit and source of funds. Passing one does not pass the other five. I would test an insured or conventional A route first, then compare alternative/B or short-term financing only when the documents and future exit justify the extra cost.
Related: Mortgage declined? Start here · Mortgage Knowledge Centre · Real Estate Centre · Updates & Rules Centre
Would a second opinion help before you commit?
Send Rajiv the property, deadline, financing concern and the documents already available. He can identify the missing questions, compare practical mortgage routes and explain the next step in plain language.