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:
| Category | What It Covers |
|---|---|
| Dealing | Arranging mortgages between borrowers and lenders, the core activity of most brokers |
| Trading | Buying and selling mortgages or mortgage investments |
| Administering | Servicing mortgages, collecting payments, managing the loan after funding |
| Lending | Acting as the lender directly, funding mortgages with private or pooled capital |
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
Frequently asked questions
What is the BC Mortgage Services Act?
The Mortgage Services Act (MSA) is British Columbia's new law governing mortgage brokers, replacing the Mortgage Brokers Act that has been in place since 1972. It moves the province from a registration system to a full licensing framework, with new categories, qualification standards, and brokerage-level governance requirements, overseen by BCFSA.
When does the Mortgage Services Act come into force?
October 13, 2026. It was passed as Bill 29 in 2022, with a 15-month transition period given to the industry to prepare before the new licensing rules become mandatory.
Does the MSA change how much my BC mortgage broker gets paid?
No. The lender-paid finder's fee structure that most Canadian mortgage brokers operate under is unchanged. The MSA changes licensing, qualification, and governance requirements for who can legally operate as a broker or brokerage, not the underlying compensation model.
What is a Personal Mortgage Corporation (PMC) license?
Some brokers route their commission income through a personal corporation. Starting October 13, 2026, any broker doing this in BC needs a separate PMC license in addition to their individual broker license. It is a new requirement introduced by the MSA.
How do I verify my mortgage broker is licensed under the new BC rules?
Search the broker and their brokerage on the BCFSA public registry and confirm their license category (most commonly "dealing") matches the service they are providing you. If they operate through a personal corporation, confirm it holds a PMC license once the MSA takes effect.
Does the Mortgage Services Act apply outside BC?
No, it is BC-specific legislation regulated by BCFSA. Other provinces have their own regulators and rules: FSRA in Ontario, RECA in Alberta, and the AMF in Quebec. If you are working with a broker outside BC, verify their license with that province's regulator instead.
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