Canada Extends Foreign Home Buyer Ban

Canada’s government has extended through the end of 2026 a controversial ban on foreign home buyers that took effect last January after years of debate.

“For years, foreign money has been coming into Canada to buy up residential real estate, increasing housing affordability concerns in cities across the country, and particularly in major urban centres,” Chrystia Freeland, Canada’s deputy prime minister and minister of finance, said in a news release yesterday. “Foreign ownership has also fuelled worries about Canadians being priced out of housing markets in cities and towns across the country.”

The Prohibition on the Purchase of Residential Property by Non-Canadians Act forbids non-citizens from buying residential property in most urban areas, though it includes a long list of exceptions. Property in many rural and “recreational” regions is exempt; most students, refugees, permanent residents, spouses of Canadian citizens, and some temporary workers in Canada may still buy homes.

While the government says the ban will help ease Canada’s severe housing crunch, critics in the real estate industry counter that the prohibition is misguided―and ineffective.

“The newly announced two-year extension is completely unnecessary, considering the fact there is no analysis, evidence or data from Statistics Canada, CMHC [Canada Mortgage and Housing Corporation] or Finance Canada, to support the government’s intended impact on housing affordability in Canada,” said Janice Myers, CEO of the Canadian Real Estate Association (CREA), in a statement Monday. “If the government decides to move forward with this baseless extension, CREA urges them to consider recommendations including exempting pre-construction financing, defining and exempting recreational property, including CUSMA [Canada-United States-Mexico Agreement] exemptions, and giving provinces input to tailor to their housing market requirements,” she added.

Don Kottick, the president and CEO of Sotheby’s International Realty Canada, agreed.

“Canada’s housing market has been driven almost entirely by the housing needs and demands of locals, as well as by population gains due to in-migration of Canadians from other cities, and through immigration,” he told Mansion Global in an email. “The extension of the foreign buyers ban will continue to have little or no impact on housing affordability and housing prices. This policy has only confused and frustrated those from other countries with crucial skills, talent and capital that Canada has been striving to attract and retain.”

The ban has also chilled luxury home sales in key markets like Toronto, said Maureen O’Neill, manager of Sotheby’s International Realty Canada in Toronto. “People who want to sell houses for more than C$5 million [US$3.92 million] can no longer rely on the buyers they used to count on globally,” she said. “It’s another extra burden on selling a house.”

That burden may soon get even heavier; Toronto’s mayor last week endorsed a 10% tax on foreign home buyers in that city, Canada’s largest. The province of Ontario already imposes its own 25% “non-resident speculation tax” on foreign buyers.

Though Canadian data on non-resident buyers is limited, the CBC last year reported that in British Columbia―one of the nation’s hottest housing markets―only about 1.1% of transactions in 2021 involved a foreign buyer, a drop of 3% in 2017. At the time, Ontario’s government told the CBC it had seen “a downward trend” in foreigners buying property since it began taxing non-resident purchases in 2017.

A grand old dame who has stood the test of time, Marika is a slice of Hunters Hill heritage transformed for modern-day living.

Meticulously renovated between 1981 and 1983, with several updates since, Marika made it onto the heritage register in 1999 just in time to signal a new millennium. Today, the modernised mansion is on the market with an auction price guide of $7.5 million, marketed through BresicWhitney’s Nicholas McEvoy.

“The home is a fantastic opportunity for a discerning buyer to get a grand family estate-style property, with a pool, tennis court and grounds, for a price that’s much more affordable than expected,” McEvoy says.

Sitting pretty on the corner of Augustine St and Ryde Rd, the stately Federation residence occupies a sprawling 2472sq m block, which was once part of a 30-acre land grant handed to Frederick Augustus Hayne in 1835. In 1902, he sold it to Dr Leopold Augustus Carter, a local dentist. Two years later, Marika, then known as “Ryde”, appeared in the famed Sands Directory – the social media of its era – a symbol of its architectural significance.

Surrounded by manicured gardens with sculpted hedges, a pool and full tennis court, Marika is a prime example of Federation style with contemporary elements.

Inside, the single-level five-bedroom home showcases intricate craftsmanship, from its decorative gables, period archways and bay windows to the coloured glass panels on multiple doors and windows. Elegant formal rooms have high ornate ceilings that are a preserved nod to Marika’s past, while the more modern spaces are relaxed family-friendly zones.

Thanks to a pavilion-style addition, the L-shaped layout measures 450sq m internally and wraps around a central courtyard that plays host to the alfresco dining terrace and pool, while a wide veranda frames the original front rooms of the house.

Primary living spaces, including the dining area with integrated bar, open to the great outdoors via stacker doors and the 21st century kitchen has a large island bench and a butler’s pantry with hidden access to the triple lock up garage. There is also a dedicated media room, a library or home office, plus a separate family room with a beautiful bay window.

All bedrooms feature built-ins while the main retreat, and a second bedroom, have shower ensuites. The shared bathroom houses convenient twin vanities and a freestanding bathtub.

Beyond the interiors, Marika delivers resort amenities with a full-sized, floodlit tennis court, the pool, barbecue terrace and a self-contained studio apartment with the added bonus of Harbour Bridge glimpses.

Added extras include a converted loft storage space, a large laundry with side yard access, ducted air conditioning, multiple fireplaces, solar panels with a battery backup and modern insulation.

Accessed via Augustine St, Marika is close to St Joseph’s College, Boronia Park shops, local ovals and city transport.

Marika at 59 Augustine St, Hunters Hill is set to go under the hammer on April 26, on site at 9am with a price guide of $7.5 million. The listing is with Nicholas McEvoy and Narelle Scott of BresicWhitney Hunters Hill.

Canada Extends Foreign Home Buyer Ban

The law that forbids non-residents from acquiring homes in most areas has affected the luxury end of urban markets, experts say

A heritage-listed Federation estate with tennis court, pool and studio, Marika offers timeless elegance and modern family living in the heart of Hunters Hill.