Transition to New Mortgage Services Act Begins Following Government Approval of Rules and Regulation

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A picture of the BC Legislative Assembly beneath a bright blue sky

The rules and regulation accompanying the new Mortgage Services Act (“MSA”) have been approved by the BC Government, signifying the start of a 15-month period for the mortgage services industry to transition from the current Mortgage Brokers Act (“MBA”) to the MSA.

The MSA received Royal Assent on November 3, 2022. Since then, the BC Government, in consultation with BCFSA, has been developing the rules and regulation that will accompany the MSA. The MSA will come into effect on October 13, 2026, and will repeal and replace the outdated MBA.

The MSA brings in new requirements and tools aimed at protecting consumers, including new and improved disclosure requirements, higher suitability standards, and increased enforcement and monitoring tools. 

“Buying a home is a big decision. Most people need to borrow money to make it happen and turn to mortgage brokers for help and advice,” said Tolga Yalkin, CEO and registrar of mortgage brokers, BCFSA. “People need to feel confident that the advice they’re getting is fair, honest, and in their best interest. The new Mortgage Services Act, along with BCFSA’s work as a regulator, will help build that confidence.”

BCFSA will oversee the transition from the MBA to the MSA and will support the mortgage services industry as it prepares for implementation of the new regulatory framework. The transition will happen over a 15-month period to provide sufficient time for implementation.

“As we move forward with implementing these changes, we’re committed to listening closely to those working in the mortgage industry,” said Mr. Yalkin. “We know this is a big change, and we don’t expect the industry to adapt overnight. That’s why we’re taking a careful approach and offering support every step of the way – to help mortgage brokers adjust and to make sure the transition works well for everyone.”

Registered mortgage brokers will need to complete certain activities, like transition education courses, before the MSA comes into effect to provide mortgage services under the MSA. Details about transition activities, including when courses will launch, will be shared by BCFSA shortly.

Throughout the transition, BCFSA will publish guidance and regulatory information and hold information sessions to ensure the mortgage services industry receives timely information regarding the transition. BCFSA will update its MSA webpage regularly with new information and will communicate directly with current mortgage broker registrants as new information about the transition process becomes available.

Consumers seeking a mortgage during the transition period should continue to take steps to ensure they are working with a registered mortgage broker by using BCFSA’s Find a Mortgage Broker tool.