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Mortgage Services Act: Licensing

Mortgage Services Act: Licensing

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Under the new Mortgage Services Act (“MSA”), mortgage brokers registered under the current Mortgage Brokers Act (“MBA”) will be required to become licensed, as opposed to being registered with BCFSA. Adopting a licensing framework represents a more modern, effective approach to regulation.

The MSA introduces new licence levels, which will replace registration types under the MBA, as well as new licence categories which determine the services a licensee can provide.

The table below compares licence levels between the current MBA and the MSA:

DescriptionMBAMSA
Business entity that carries on business providing mortgage services through other licensees/registrants Mortgage
Broker		Mortgage Brokerage
Individual providing mortgage services on behalf of the business Submortgage BrokerMortgage
Broker
Individual with regulatory responsibility for the business Designated IndividualPrincipal
Broker

A second phase of the MSA implementation focused on the mortgage lender licence is planned to occur after the MSA comes into force. Under the MSA, a mortgage lender is defined as an individual or entity providing only the mortgage service of mortgage lending but not carrying on the business of mortgage lending. BCFSA will share information about the mortgage lender licence level as soon as it is made available.

Within those licence levels, a person may be licensed within one or more categories by the Rules. The table below outlines the licence categories:

CategoryDescription
Dealing in mortgagesRelates 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 mortgagesCaptures 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 mortgagesMeans handling existing mortgage loans for another person. This includes receiving and remitting payments, monitoring borrower’s performance and compliance, and enforcing payment.
Mortgage lendingLending 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.

People who are registered under the MBA and want to become licensed under the MSA will learn more about the new licensing structure and licensing process when they complete the mandatory MSA: Getting Started education course. Visit the MSA: Education webpage for more information about transition education courses.

MSA Licence Transition

BCFSA is leading the transition from the MBA to the MSA and will support the mortgage services industry as it prepares for the implementation of the new regulatory framework. A 15-month transition period has been established to ensure the mortgage services industry and BCFSA have time to prepare for the MSA. Visit BCFSA’s MSA Transition webpage for more information.

Throughout the 15-month transition period, MBA registrants will need to complete some transition education courses, to become licensed under the MSA.

Further information about the process to become licensed under the MSA will be shared directly with registrants in the coming months.

MSA Licensing FAQs

*This information will be updated as new information becomes available.

  • The MSA introduces several new terms and phrases. Moving to a licensing model under the Mortgage Services Act (“MSA”), as opposed to the registration model under the Mortgage Brokers Act (“MBA”), brings a more modern, supervisory approach to regulation, consistent with other financial services legislation, including the Real Estate Services Act (“RESA”).

  • The licence levels and categories are referenced in Section 9 of the MSA. When the MSA is implemented, there will be three licence levels, and each licence level will have at least one category associated with it.

    Licence levels:

    • Mortgage Brokerage: Business entity that carries on business of providing mortgage services.
    • Principal Broker: Individual with regulatory accountability who represents the business entity.
    • Mortgage Broker: Individual who provides mortgage services on behalf of the business entity.

    Within those licence levels, a person may be licensed within one or more categories 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.

  • The table below compares roles under the MSA and the MBA:

    DescriptionMBAMSA
    Business entity that carries on business providing mortgage services through other licensees/registrants Mortgage
    Broker    		Mortgage Brokerage
    Individual providing mortgage services on behalf of the business Submortgage BrokerMortgage Broker
    Individual with regulatory responsibility for the business Designated IndividualPrincipal
    Broker

  • To become a principal broker, an individual must be nominated by their brokerage to take on the role. That individual must meet all suitability requirements set out by BCFSA, including having completed all mandatory MSA transition education courses prior to the MSA coming into force on October 13, 2026. More information about the suitability requirements for principal brokers, education courses, and the licensing process will be provided soon.

  • No. Designated individuals can choose whether or not they wish to apply to become licensed as the principal broker under the MSA. However, all mortgage brokerages must have a principal broker in place in order to operate.

  • All brokerages are required to have a principal broker. During the transition, the brokerage will be required to propose one individual to act as the principal broker for the brokerage. If the current designated individual does not wish to transition to the role of a principal broker, the brokerage will need to find an alternative proposed principal broker in order for the brokerage’s licence to be transitioned to the new framework

    More information about the transition process and brokerage responsibilities will be provided over the coming months.

  • Anyone who is identified by the brokerage as the proposed principal broker under the MSA will be required to meet suitability requirements, including completion of all mandatory transition education prior to the MSA coming into force on October 13, 2026. This includes completing the MSA: Getting Started course, and the MSA: The New Principal Broker course. Visit the MSA: Education webpage for more information.

  • An individual principal broker can be the principal broker of up to four related brokerages, or more than four if they get approval from the Superintendent of Mortgage Brokers, as per section 4 of the Mortgage Services Rules.

  • No. Mortgage brokers can only be licensed to provide mortgage services for one mortgage brokerage.

  • The MSA establishes the ability for principal brokers and mortgage broker licensees to apply for a licence for a personal mortgage corporation (“PMC”). A PMC will offer mortgage broker licensees the ability to take advantage of the flexibility in income and tax planning that incorporation brings.

  • Under the MSA, any licensee who is receiving remuneration through a corporation in respect of mortgage brokering services must take the necessary steps to obtain a licence for that corporation. This includes individuals who may have existing personal services established. This means the licensee will carry a licence for themselves as an individual, and another licence for the PMC. Requirements for PMCs are set out in Part 6 of the Mortgage Services Regulation.

    There are implications that mortgage broker licensees should consider carefully before deciding to apply for licensing for a PMC. BCFSA strongly recommends that before you take steps to incorporate and licence a PMC, you obtain professional accounting and legal advice to make sure that a PMC is the right choice for you.

    Further information and guidance about licensing for PMCs will be shared once it is available.

    Please note under the current MBA, any incorporation receiving remuneration for mortgage brokering services, including personal corporations, must be registered as a mortgage brokerage with the Office of the Registrar. For information on how to register a brokerage, please visit Becoming a New Mortgage Broker or contact mortgagebrokers@bcfsa.ca.

  • Section 9(1) of the MSA establishes four licensing levels:

    1. Mortgage brokerage;
    2. Mortgage broker;
    3. Principal broker; and
    4. Mortgage lender.

    When the MSA comes into force on October 13, 2026, the first three licensing levels will come into force. The mortgage lender licence level will not come into effect on October 13, 2026. An in-force date for the mortgage lender licence level has not been identified by the Provincial Government. BCFSA will share information about the mortgage lender licence level as soon as it is made available.

    The mortgage lender licence is intended to include lenders who are not ‘carrying on the business’ of lending. Individuals should seek independent legal advice to determine if any services or activities they undertake would be considered to be carrying on the business of providing mortgage services. 

  • The Mortgage Services Act establishes a “mortgage lender” licence and a category for “mortgage lending”. The information below describes the difference between the mortgage lender licence level and the mortgage lending category.

    Mortgage Lender Licence
    • Refers to an individual who is not ‘carrying on the business’ of mortgage lending.
    • An example of an activity that may fall into the mortgage lender license level could include a private individual who only lends money on the security of real property one time.
    • The mortgage lender license level will not come into force on October 13, 2026.
    Mortgage Lender Category
    • Refers to an individual who is ‘carrying on the business’ of mortgage brokering by lending money on the security of real property and/or buying a debt obligation secured by real property.
    • An example of a brokerage that is operating in the mortgage lender category would include an investment and lending company that pools capital from investors to provide mortgage loans.
    • The mortgage lender licence category will come into effect on October 13, 2026.

  • As of October 13, 2026, a person who is carrying on the business of mortgage lending must be licensed as a mortgage brokerage in the lending category. The brokerage must have a principal broker who is also licensed in the lending category. Individuals licensed in relation to the brokerage must also be licensed in the lending category.

  • As of October 13, 2026, mortgage brokerages and brokers licensed in the category of lending may lend money on the security of real property and buy a debt obligation secured by real property. They can deal, trade, and administer their own loans. In addition, they can work with mortgage dealers at other brokerages to help find potential borrowers or with mortgage traders to sell their mortgages to other lenders.

    If mortgage brokerages or brokers licensed in the lending category want to deal, trade, or administer loans from people unconnected to the brokerage’s book of business, then the brokerage would need to get licensed in those other categories. This means that if they want to administer, trade, or deal loans that that are not the brokerage’s, they need to be licensed in the other categories too.

  • When the MSA comes into effect on October 13, 2026, you can lend on the security of real property and receive remuneration for mortgage lending without being licensed if:

    • You are lending your or your spouse’s money, not acting on anyone else’s behalf other than yourself or your spouse, and not carrying on the business of mortgage lending (see Division 2 under the Mortgage Services Regulation)
    • You are a director, officer or employee of an organization that does not require licensure under the MSA, and you are only providing mortgage services on behalf of that organization or an affiliate corporation (see s. 9 under the Mortgage Services Regulation).
    • You fall under an exemption in the MSA or in the Mortgage Services Regulation.

    If you are conducting or planning to conduct mortgage lending and are unsure whether you are carrying on the business of lending, it is important to seek independent legal advice. Carrying on the business of mortgage lending without being properly licensed may result in serious consequences including fines and penalties for unlicensed activity.

    When the mortgage lender licence takes effect, you may need to become licensed depending on how it is implemented. BCFSA is awaiting further information on the mortgage lender licence from the Provincial Government, including implementation timelines, and will share information about it as soon as it is available.

  • The MSA does not include the term ‘private lender’. Rather, it distinguishes between those who ‘carry on the business’ of mortgage lending or not.

    As of October 13, 2026, persons who are carrying on the business of mortgage lending must be licensed under the MSA as a mortgage brokerage in the lending category. The brokerage must have a principal broker who is also licensed in the lending category, and it may also employ individual mortgage brokers licensed in the lending category.

    As of October 13, 2026, persons who are not carrying on the business of mortgage lending, but would like to provide mortgage lending can only be remunerated for that activity without being licensed under the MSA, if:

    • You are lending your or your spouse’s money, not acting on anyone else’s behalf other than yourself or your spouse, and not carrying on the business of mortgage lending (see Division 2 under the Mortgage Services Regulation)
    • You are a director, officer or employee of an organization that does not require licensure under the MSA, and you are only providing mortgage services on behalf of that organization or an affiliate corporation (see s. 9 under the Mortgage Services Regulation).
    • You fall under an exemption in the MSA or in the Mortgage Services Regulation.

    If you are conducting or planning to conduct mortgage lending and are unsure whether you are carrying on the business of lending, it is important to seek independent legal advice. Carrying on the business of mortgage lending without being properly licensed may result in serious consequences including fines and penalties for unlicensed activity.

  • A second phase of the MSA implementation focused on the mortgage lender licence is planned to occur after the MSA comes into force.

    BCFSA is awaiting further information on the mortgage lender licence from the Provincial Government, including implementation timelines, and will share information about it as soon as it is available.

  • Whether a person is ‘carrying on business’ is contextual. Where an activity is incidental/tangential to operations, it will be less likely that this activity falls within the company or individual’s ordinary course of business. ‘Carrying on business’ suggests a degree of system or continuity in the particular area or industry, and a repetition or series of acts. Potentially relevant factors include:

    • Commercial presence such as office and employees
    • Intention to make a profit from the particular activity 
    • Duration of relevant holdings 
    • Nature and quantity of the investments
    • Time spent on the activity
    • Special knowledge of the industry 

    Since whether an organization or individual is ‘carrying on business’ in the mortgage industry is fact-specific, unlicensed individuals or organizations who may be ‘carrying on business’ within the meaning of the MSA are strongly encouraged to seek legal advice. 

    BCFSA will share information on the term ‘carrying on business’ in the Mortgage Services Knowledge Base over the coming months. However, that information is not a substitute for independent legal advice.

  • Notaries in good standing with the Society of Notaries Public in BC do not need a licence under the MSA if they are negotiating or arranging a mortgage for someone as part of their regular services of preparing property documents for filing or registration.

    Accountants licensed under the Chartered Professional Accountants Act do not need a licence under MSA to give advice about mortgage contracts if it is part of their regular accounting services.