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Mortgage Services Act
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Go to General MSA FAQs
- What is the Mortgage Services Act?
- Why is mortgage broker legislation changing?
- When will the Mortgage Services Act Come into Force?
- How will the Implementation of the Mortgage Services Act Impact Me?
- What are the Key Legislative Changes Under the Mortgage Services Act?
- How does the MSA increase consumer protection related to unlicensed activity?
- What’s the Difference Between Licence Levels and Categories Under the Mortgage Services Act?
- What is BCFSA’s Role in the Implementation of the Mortgage Services Act?
- Who Can I Contact if I Have Questions About the Mortgage Services Act?
About the Mortgage Services Act
The Mortgage Services Act (“MSA”) received Royal Assent on November 3, 2022. When it comes into force on October 13, 2026, it will repeal and replace the outdated Mortgage Brokers Act (“MBA”). The MSA will modernize the regulatory framework for the mortgage services industry in British Columbia to provide greater protection for consumers.
The MSA represents a significant shift for the mortgage services industry. BC Financial Services Authority (“BCFSA”) will lead the transition from the MBA to the MSA and will support the mortgage services industry as they prepare for the implementation of the new regulatory framework.
Throughout the implementation period, BCFSA will continue to update its website and share information directly with current mortgage services registrants as new information about the MSA and the transition process becomes available. This includes:
- Mortgage Broker Update e-newsletters;
- Virtual information sessions;
- A new MSA Bulletin (blog); and
- The launch of a Mortgage Broker Knowledge Base, which will include advisories, information, and guidelines to help industry members understand regulatory requirements. Details about when the knowledge base will launch will be shared soon.
Current mortgage services registrants should take steps to stay up to date with information about the incoming MSA. During the transition period, mortgage brokers continue to be required to comply with all requirements under the MBA, which will continue to be in place until October 13, 2026.
The Road Ahead to the Mortgage Services Act
On July 14, 2025, the BC Government approved the rules and regulation that accompany the MSA. This marked the beginning of a 15-month transition period to ensure the mortgage services industry has time to prepare for the MSA. Visit the MSA Transition page to find out more about what the transition will mean for you.
MSA: The Road Ahead Information Session
On September 10 and 17, 2025, BCFSA hosted virtual MSA: The Road Ahead information sessions. The two sessions contained the same information, providing attendees with an overview of the MSA and details about the transition process.
The Road Ahead to the MSA Graphic
This Road Ahead to the Mortgage Services Act graphic provides a snapshot of what to expect throughout the 15-month transition period. (Download PDF).
MSA Implementation Roadmap
If you have questions about the MSA, including implementation timelines or new requirements, you can send them to BCFSA’s enquiries team at msa@bcfsa.ca.
Mortgage Services Knowledge Base
Your information and resource hub. The Knowledge Base will be updated regularly throughout the MSA transition with new regulatory statements, information and guidelines.
See all (will open in a new tab)MSA Education
BCFSA has developed mandatory transition education to help current mortgage broker registrants prepare for licensing under the MSA.
Learn moreTransition to the MSA
The new MSA represents a significant shift for the mortgage services industry. Read more about what the transition period will look like and how it will impact you.
Learn moreMSA Licensing
Find out more about the licensing process under the MSA, including information about the new licensing levels and categories, and what you need to do to become licensed.
Learn moreMSA Fees
Find out more about the fee schedule that will be implemented when the MSA comes into force.
Learn more
General MSA FAQs
*This information will be updated as new information becomes available.
The Mortgage Services Act (“MSA”) will establish a new regulatory framework for the mortgage services industry in British Columbia. The MSA will come into force on October 13, 2026, at which time it will repeal and replace the outdated Mortgage Brokers Act (“MBA”), modernizing the regulation of B.C.’s mortgage services industry to provide greater consumer protection.
Although it has been amended several times since its enactment in 1972, the current MBA has not kept pace with evolving national and international standards in consumer protection, changes in the financial services market, and emerging issues such as money laundering in the real estate market.
In its 2019 report, the Expert Panel on Money Laundering in B.C. Real Estate called for the modernization of the mortgage broker regulatory regime by replacing the MBA with new legislation. Similarly, the Cullen Commission’s 2022 report also called for significant changes to the MBA.
In 2020, the BC Government held a public consultation on potentially replacing the MBA. They heard from many key industry stakeholders and decided to move forward with changes. The outdated MBA will soon be replaced by the new MSA, when it comes into force on October 13, 2026. This new law will modernize how mortgage services are regulated in B.C. It will also give BCFSA the authority to develop rules for mortgage brokers, which was one of the Cullen Commission recommendations.
The MSA will come into force on October 13, 2026.
On July 14, 2025, the BC Government approved the rules and regulation that accompany the MSA and set out the regulatory framework for the MSA. A 15-month transition period has been established to ensure the mortgage services industry and BCFSA have time to prepare for the MSA.
The approval of the MSA Rules and Regulation marked the beginning of the transition period. The transition will take place over approximately 15 months before the regulation and rules will be in force on October 13, 2026. Visit the MSA Transition webpage to find out more about what the transition will mean for you.
There are different impacts and requirements for registrants, depending on what type of licence you would like to have under the MSA.
If you are a current mortgage services registrant, you will need to complete mandatory transition education in order to become licensed under the new MSA. If you have completed the transition education by October 13, 2026, your registration will be automatically transitioned to a licence when the MSA comes into force. The transition education will be different depending on whether you plan to become licensed as a principal broker or a mortgage broker. Visit the MSA: Education webpage for more information.
Requirements under the MSA are different from what mortgage brokers are familiar with under the MBA. Information and guidance about specific requirements under the MSA will be shared throughout the transition period.
More information about the activities current registrants need to complete before the MSA comes into force will be shared directly with you in the coming months.
There are a wide range of changes under the MSA. Throughout the transition period more information about the specific changes will be made available through education, information, and guidelines for industry members.
Some of the key changes include:
Adoption of licensing framework:
Under the new regulatory framework, current MBA registrants will be required to become licensed. The MSA also establishes new categories of licensing, which determine the services a licensee can provide.
New regulatory rules:
A new set of regulatory rules have been developed to accompany the MSA. These rules set out requirements on a number of important topics, such as standards of conduct, qualification requirements, disclosures, business practices, reporting to BCFSA, and more. New responsibilities for licensees are included, such as specific principal broker and mortgage broker responsibilities, and prohibitions on engaging with unlicensed persons to provide mortgage services.
Compliance and enforcement:
The MSA also expands the compliance and enforcement tools available to BCFSA, aligning them more closely with the Real Estate Services Act (“RESA”). These tools include:
- A new disciplinary framework, with discipline penalties for serious contraventions of up to $250,000 for individuals and $500,000 for mortgage brokerages.
- A new administrative penalties framework, which supports enforcement that is proportionate to the level of misconduct. This includes administrative penalties ranging from $1,000 up to $100,000 for minor to moderate contraventions.
Requirement of principal broker:
Under the MSA, a mortgage brokerage must have at least one principal broker licensed in relation to the brokerage. A principal broker represents the mortgage brokerage for all purposes under the MSA, and is responsible for:
- Exercising the rights conferred on the mortgage brokerage by its licence;
- Performing duties imposed on the mortgage brokerage by its licence; and
- Supervising the mortgage brokers who are licensed in relation to the mortgage brokerage.
More information about the role of a principal broker, and how brokerages can propose a principal broker, will be shared in the coming months.
New terms and definitions:
Other key changes under the MSA include the new terms and definitions to support alignment with other financial services legislation in B.C. and other jurisdictions in Canada, and the establishment of a Superintendent of Mortgage Brokers, who has rule-making authority.
Establishment of Superintendent of Mortgage Services:
The MSA establishes a Superintendent of Mortgage Services. The Superintendent is responsible for exercising the powers and duties related to the regulation of mortgage services, as outlined in the MSA. This includes authority regarding licensing, authorizing trust accounts, and compliance and enforcement activities. The Superintendent is also empowered to investigate licensees, including having the authority to compel witnesses and may also conduct searches and seizures of records or other evidence with judicial approval.
Personal Mortgage Corporations:
The MSA also provides mortgage services licensees who are licensed as a principal or mortgage broker with the ability to create personal mortgage corporations. This opportunity has been enshrined in the regulation as a response to requests from industry and is similar to those of Personal Real Estate Corporations under RESA. More information on Personal Mortgage Corporations will be shared in the coming months.
Transition education courses covering the key legislative changes introduced by the MSA will be rolled out to all current registrants over time to help them understand what these changes mean for them.
The MSA grants BCFSA enhanced jurisdiction over unlicensed mortgage services activity and provides more tools to monitor and take enforcement action to protect consumers from unlicensed operators. For example, under the MSA licensees will be required to report any unlicensed mortgage services or real estate activity to BCFSA.
Reporting unlicensed activity helps ensure that only qualified licensees are providing mortgage services, maintaining high industry standards and preventing fraud.
The new Mortgage Services Rules establish new licensing levels and categories, providing enhanced transparency to consumers on what services a mortgage broker can provide.
There are three licence levels under the MSA and four licence categories.
Licence levels:
- Mortgage Brokerage: Business entity that carries on business of providing mortgage services.
- Principal Broker: Individual with accountability (e.g., responsible for the conduct of the brokerage’s business) and represents the mortgage brokerage.
- Mortgage Broker: Individual who provides mortgage services on behalf of the mortgage brokerage.
Within those licence levels, a person may be licensed within one or more categories of licensing, established by the Rules.
Licence categories:
- Dealing in mortgages: Relates to activities involved in originating mortgages such as soliciting another person to borrow or lend on a mortgage, advising borrowers or lenders about entering into a particular mortgage, providing prospective borrower information to a prospective lender, assessing a prospective borrower on behalf of a prospective mortgage lender, and negotiating or arranging a mortgage on behalf of another person.
- Trading in mortgages: Captures the transfer of mortgages once they are in place. This includes buying, selling, or exchanging mortgages, whether on your own behalf or on behalf of another, and soliciting another person to buy, sell, or exchange a mortgage.
- Administering mortgages: Means handling existing mortgage loans for another person. This includes receiving and remitting payments, monitoring borrower’s performance and compliance, and enforcing payment.
- Mortgage lending: Lending on the security of real property. The other definitions of dealing, trading, and administering then relate to activities surrounding a mortgage lending transaction or relationship.
Visit the MSA: Licensing webpage for more information about licence levels and licensing under the MSA.
The BC Government led the development of the MSA and its Rules and Regulation in consultation with BCFSA.
BCFSA is leading the transition from the current MBA to the new MSA, and the implementation of the regulatory framework.
- Providing pre-licensing and continuing education to those in the mortgage services industry.
- Licensing mortgage brokers and brokerages under the MSA and supporting them through the transition process.
- Developing resources and information to help guide the mortgage services industry as they navigate the transition to the new regulatory regime.
BCFSA will publish new information and resources, including information about transition education courses to equip current MBA registrants with the knowledge and ability needed to operate under the new regulatory framework.
Once in effect, BCFSA is responsible for administering the MSA.
BCFSA’s enquiries team is available to answer questions you might have about the new Mortgage Services Act. Email them at msa@bcfsa.ca.
The BCFSA website will be your primary source of information about the incoming MSA and related legislation, and it will be updated as more information becomes available.
BCFSA will also communicate directly with the mortgage services industry through regular newsletters and other communications sent directly to registered mortgage brokers’ email addresses.