BC's Mortgage Services Act (2026): What Changes for Borrowers on October 13

Why BC Is Replacing a 50-Year-Old Law

British Columbia has regulated mortgage brokers under the Mortgage Brokers Act (MBA) since 1972. That law is being replaced by the Mortgage Services Act (MSA), passed as Bill 29 in 2022 and set to come into force on October 13, 2026, after a 15-month transition period the province gave the industry to prepare.

The regulator, BCFSA (BC Financial Services Authority), oversees the rollout. The goal is to modernize a decades-old framework with stronger consumer protections, clearer accountability, and rules that reflect how the mortgage industry actually operates today.

From Registration to Licensing: The Core Change

Under the old MBA, mortgage brokers and brokerages operated under a registration system, a comparatively light-touch process. The MSA replaces this with a full licensing framework.

Under licensing, brokers and brokerages must apply for, and be approved for, the specific service categories that match what they actually do. Registration alone will no longer be sufficient once the MSA is in force.

The Four Service Categories

The MSA defines mortgage services in four categories. A broker or brokerage needs a license covering each category it actually operates in:

New Requirements for Brokers and Brokerages

Beyond the licensing categories, the MSA rules add several requirements that did not exist under the MBA:

• English-language proficiency standards for all licensees • Requalification requirements for anyone seeking to reinstate a lapsed license • Minimum experience requirements for principal brokers overseeing a brokerage • Formal governance and financial policy requirements at the brokerage level • New financial reporting and assurance obligations for brokerages, starting once the MSA takes effect

Taken together, these raise the bar for who can operate a brokerage in BC, not just who can hold an individual license.

Personal Mortgage Corporations Need a Second License

Some brokers receive their compensation through a Personal Mortgage Corporation (PMC), a personal corporation set up to route commission income. Starting October 13, 2026, any broker doing this needs a separate PMC license in addition to their individual license. Operating a PMC without the additional license once the MSA is in force will not be compliant.

What This Means for You as a Borrower

The MSA does not change how your broker gets paid, the lender-paid finder's fee structure stays the same. What it changes is who is legally allowed to operate as a broker or brokerage in BC, and how much oversight and disclosure they are held to.

In practice, that means: stronger consumer protection rules, clearer accountability if something goes wrong, and a higher minimum bar for brokerage-level governance. If you are working with a BC broker around the October 2026 transition, it is reasonable to ask whether their license reflects the new framework.

How to Check If Your BC Broker Is Compliant

• Search the broker and brokerage on the BCFSA public registry • Confirm the license category matches the service they are actually providing you (most borrower-facing brokers need "dealing") • If they operate through a personal corporation, confirm it holds a PMC license once the MSA is in force • If anything is unclear, ask directly, a licensed broker should be able to explain their licensing status without hesitation

Timeline: What Happens When

• 2022: Bill 29 passes, creating the Mortgage Services Act • Prior to Oct 2026: BC approves the accompanying rules and regulations, starting a 15-month industry transition period • October 13, 2026: The MSA comes into force, the Mortgage Brokers Act is repealed, and the licensing framework becomes mandatory • Ongoing: New brokerage financial reporting and assurance requirements begin under BCFSA oversight