🤔 What is the ‘Foreign Buyer Ban’ Anyways?

If you’ve been following Canadian real estate news, you’ve likely heard about the Prohibition on the Purchase of Residential Property by Non-Canadians Act, commonly referred to as the ‘Foreign Buyer Ban.’ This legislation, which was initially rolled out on January 1 2023 and is currently in effect through to January 1 2027, was introduced as an attempt to address housing affordability in major national markets by restricting foreign ownership of real estate.

While the headline may sound absolute, the reality of the situation is more nuanced. There are several key exemptions built into the Act—meaning some non-Canadians are still eligible to buy property in Canada.

🍁 Who Is Considered a “Non-Canadian”?

Under the Act, the definition of a “non-Canadian” includes:

• Individuals who are not a Canadian citizen, permanent resident, or a person registered as an Indian under the Indian Act

• Corporations not incorporated at either the provincial or federal level in Canada

• Canadian corporations controlled by non-Canadians

• A prescribed person or entity

✅ Who May Be Eligible For an Exemption?

But there are several categories of individuals and entities that are exempt from the prohibition. Here’s a breakdown of who qualifies for an exemption under the current rules.

1. International Students

International students may be eligible to buy a home in Canada if they meet all of the following criteria:

• They’ve filed tax returns in Canada for at least 5 years.

• They’ve been physically present in Canada for a minimum of 244 days per year in each of those years.

• The property being purchased is less than $500,000.

• They have not purchased any other residential property in Canada.

2. Foreign Workers

Temporary foreign workers may also be exempt from the Foreign Buyer Ban if they:

• Hold a valid work permit or are authorized to work in Canada.

• Have worked full-time in Canada for at least 3 of the past 4 years.

• Have filed income tax returns in Canada for at least 3 of those years.

3. Refugees and Protected Persons

Individuals who have been granted refugee status or are considered protected persons under Canadian immigration law and are not subject to the ban. This reflects Canada’s commitment to human rights and support for those seeking asylum.

4. Diplomats and Foreign Mission Staff

Members of foreign missions—including diplomats and consular staff—who are accredited by Global Affairs Canada and have been posted to Canada are allowed to purchase residential property.

5. Spouses or Common-Law Partners of Canadians

If a non-Canadian is buying property jointly with their Canadian or permanent resident spouse or common-law partner, the purchase is allowed—even if the non-Canadian would otherwise be prohibited.

6. Certain Types of Properties and Locations

The ban only applies to residential properties in urban areas, specifically Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs). That means:

• Rural properties, vacation cottages, and recreational land outside of urban boundaries are often exempt.

• The Act does not apply to commercial real estate, multi-unit buildings with four or more units, or industrial properties.

This map is incredibly useful in identifying those relevant areas.

7. Property Transfers Through Legal Means

The ban does not apply to properties obtained through inheritance, divorce settlements, or other legal proceedings, such as debt recovery or court orders.

💭 Final Thoughts

While Canada’s foreign buyer ban has introduced significant restrictions, it's not a blanket prohibition. Several categories of non-Canadians can still purchase homes if they meet the right criteria.

If you’re unsure whether or not you qualify under one of these exemptions, it’s always wise to consult with a real estate professional and/or legal advisor.

Have questions about how the Foreign Buyer Ban could affect your plans or your property? Let’s talk—I’d be happy to guide you through your options!

Disclaimer:
This article is for informational purposes only and should not be considered as financial, legal, or professional advice. Matthew Carson and RE/MAX Camosun make no representations as to the accuracy, completeness, or suitability of the information provided. Readers are encouraged to consult with qualified professionals regarding their specific real estate, financial, and legal circumstances. The views expressed in this article may not necessarily reflect the views of RE/MAX Camosun or its agents. Real estate market conditions and government policies are subject to change, and readers should verify the latest updates with appropriate professionals.

❓ What is Poly-B Piping and Where Do I Find It?

Polybutylene (Poly-B) was widely used in residential plumbing systems from the late 1970s through the mid-1990s. The National Plumbing Code of Canada banned Poly B piping in 1997, and the government of Canada officially banned its use in 2005. While it was initially favoured for its cost-effectiveness and ease of installation, it has since been associated with a higher risk of failure due to deterioration over time. Safety and insurance issues make identifying Poly-B piping in your home a priority, especially if you’re planning on buying or selling a property.

🔍 Key Characteristics of Poly-B Piping

• Colour: Typically grey, but can also be found in blue, black, white, or silver. Poly-B pipes were often connected using copper, brass, or plastic (acetal) fittings.

• Stamping: Often marked with “PB2110,” “CSA-B 137.8,” or similar codes.

• Material: Flexible plastic resin, unlike rigid materials like copper or PVC.

• Diameter: Commonly ½” to 1” in diameter.

• Usage: Exclusively used for water supply lines; not for waste, drain, or vent piping. Some installations may have used copper "stub-outs" (short copper sections) at fixtures, while the main lines are Poly-B.

🏠 Common Locations to Inspect

• Interior:

  • Under sinks and toilets.

  • Near the water heater.

  • In unfinished basements or attics.

  • Behind access panels (such as ceiling tiles) or drywall.

• Exterior:

  • At the main water shut-off valve.

  • At the water meter.

  • Where the water line enters the home through the basement wall or floor.

⚠️ I found Poly-B. So what?

Due to the aforementioned increased failure rate of Poly-B, almost every insurer is at this point will not bind a policy on a home with Poly-B plumbing (and the ones that do will charge you an arm and a leg.) Most lenders will not issue mortgages on uninsured properties, so dealing with your Poly-B problem is essentially a must.

🛠️ What Are My Options?

• Buying:

  If there’s no mention of Poly-B on either the Property Disclosure Statement or a Seller’s Disclosure of Material Latent Defect Form, and you or your home inspector finds some, immediately bring the issue to your real estate agent’s attention so they can negotiate a solution and ensure your ability to close the deal.

• Selling:

  Poly-B can be an expensive problem to fix. If you don’t have the up-front funds for a full plumbing-overhaul, some insurers will accept the bandaid solution of having a professionally installed water mitigation device. The device must be ULC/CSA approved, have a minimum of 4 water sensors, and a water flow device that will automatically shut water off. The device must also either be centrally monitored, or connected to your cellphone with notifications.

  You can also pre-emptively ask for Poly-B remediation quotes from various plumbers, and the buyers and their insurer can ultimately decide how to proceed. You will likely have to either lower your asking price, or pay for the work yourself in order to get the property sold.

Hopefully this information helps! If you have any questions about Poly-B piping or real estate in general, feel free to reach out and I’ll do whatever I can to assist.

Although wildfires are a relatively rare occurrence on Vancouver Island compared to other parts of British Columbia, the Old Man Lake wildfire near Sooke is an excellent reminder of best practices when buying real estate in proximity to an active fire.

As base insurance policies include fire coverage, many insurance providers will not bind (issue) policies on properties within a certain radius (typically 25-50kms) of an active, uncontained wildfire. If you don't have insurance in place prior to your transaction completion date, then your mortgage issuer might not fund your mortgage. Without financing, your deal could collapse, and you might find yourself to be in breach of contract in addition to the forfeiture of your deposit.

The following steps can help to mitigate risk, uncertainty, and stress when hunting for real estate during BC’s wildfire season, and ultimately protect your interests in a transaction.

• Talk about it: Prior to your first showing, communicate your concerns and ask your REALTOR® about the potential impact of a wildfire on a transaction, and the best practices for reducing or eliminating these impacts. Addressing your anxieties and having a well-formulated plan from the get-go will allow you to shop with confidence.

• Be wildfire aware: If you’re searching for property during wildfire season (from April to October) you should regularly check the BC Wildfire Map for new fires or changes to existing fires in your area.

• Include a fire-specific property insurance clause in your offer: A prudent REALTOR® will recommend that you include not only a clause in your offer noting that the offer is subject to the property and buyer qualifying for insurance coverage, but a further clause that allows the buyer to extend the transaction completion date if insurance is unavailable due to a nearby wildfire.

• Shop for a quote as soon as possible: Don’t wait until after the subject removal period has lapsed to search for an insurance provider. You want to leave yourself enough time to shop around for the best coverage and rates, and ask your potential provider any questions that you might have. If there isn’t suitable coverage available, you can try to push your closing date, exercise use of the Home Buyer Rescission Period, or decline to remove your ‘subject to insurance’ condition.

• Ask potential insurance providers the right questions: Remember—a quote is just an insurance provider's estimate of how much a certain policy will cost, not a guarantee of coverage! When you receive your quote, ask the provider how they handles situations in which a wildfire breaks out prior to closing. Some providers will still bind the policy if there was offer and acceptance of a quote before the wildfire became active, but some providers might pull their offer. You should also ask about deductibles, wildfire versus house fire coverage, mass evacuation coverage, and coverage limits.

• Once a policy has been found, lock it in: Time permitting, try to get your insurance in place three to four weeks prior to the deal closing -there is no reason to leave it to the last minute.

• Communicate early and often: Although there might not be an active wildfire in the area when you write your offer, that doesn’t mean that one won’t pop up before your deal closes. If a wildfire does break out mid-transaction, get in touch with your agent as soon as possible in case additional steps need to be taken with the seller or any service providers.

Wildfires are an unfortunate fact of life in British Columbia, but they don’t have to get in the way of your property ownership dreams. Working with a knowledgeable, competent agent will ensure that your interests are looked after -regardless of what Mother Nature has in store.

If you have any further insurance or real estate questions or concerns, feel free to call or text 250.888.6440 , or email info@matthewcarsonrealtor.com !