March 28, 2019

Kitec plumbing: what it is, and how it impacts mortgage financing.

If you’re considering buying a home built between 1995 and 2007, educate yourself on the implications. If you have Kitec plumbing, you have until 2020 to register your claim

What’s Kitec plumbing? 

  • A type of plumbing introduced in Canada in 1997, used until 2005 
  • It was most often sold under the name “Kitec”, but the following brands were also used: 
  • AmbioComfort 
  • AQUA 
  • KERR Controls 
  • IPEX
  • Plomberie Amelioree 
  • PlumbBetter 
  • WarmRite 
  • XPA 
  • It was thought to be a great product, because it was cheaper than copper and easy to install  

 

Kite issues: 

  • Kitec can’t take the heat – orange pipes (carrying hot water) were only certified to run at a max. temperature of 82 degrees Celsius, but hot water tanks can run hotter than this 
  • Deterioration under pressure   
  • Corrosion – Kitec fittings tend to corrode, causing restricted water flow, breakages and leaks 

 

Is Kitec still being manufactured? 

  • The first fitting recalls began in 2005, suggesting a life expectancy of 10 years 
  • Unfortunately, there isn’t much a homeowner can do to proactively mitigate the risks, other than replacing the system 
  • A $125 million dollar class action lawsuit was settled out of court by the manufacturer in 2011; details of the lawsuit can be found at www.kitecsettlement.com 
  • If you’ve identified Kitec in your home since then, you still have options – continue reading to learn more 

 

How to identify Kitec: 

  • The plumbing system usually consists of blue and orange flexible piping and brass fittings (see blog picture), although in some cases piping also came in red, dark blue, gray and black 
  • In Nova Scotia it was mostly installed in oil hot water baseboard or in–floor heating systems 
  • If your basement is finished, take a look near the hot water tank or under your kitchen or bathroom sinks 
  • In addition to orange and blue pipes, brass fittings will usually have one of the following stamps: 
    • Kitec 
    • KTC 
    • CSA B137.9/10 
    • ATSM F1974 

 

Financing implications of Kitec: 

  • Here’s the scoop: if you’re considering getting a mortgage on a property with Kitec, it’s doable, but your options will be limited as many lenders simply stay away from Kitec 
  • This is because many home insurers won’t insure a property with Kitec and without insurance, many lenders won’t assume the risk 
  • Ensure you discuss your options with your realtor before proceeding with an offer, and if you still wish to proceed, have your Realtor connect with a member of our team to discuss the specifics of the property before they finalize your financing waiver date 
  • During that conversation, we’ll be able to assess the potential financing barriers, and work with your Realtor to determine a financing date that’s realistic given the property location, type, etc. 
  • The worst thing you can do is wait to disclose the information, and run into financing snags that delay your purchase 

 

What to do if you have Kitec in your home: 

  • Call plumber for an estimate of replacement cost  – some specialize in Kitec removal 
  • The cost to remove the Kitec varies from home to home but on average, a small to medium-sized home will cost between $5000 and $6000, and a large executive home could cost over $10,000 depending on the individual system