Printed . This content is updated regularly, please refer back to https://bcfsa.ca to ensure that you are relying on the most up-to-date resources.
Mortgage Services Act: Licensing
Select the section you’d like to navigate to.
Accordion items
-
Go to MSA Licensing FAQs
- Why are mortgage brokers moving from a registration structure to a licensing structure under the MSA?
- What’s the difference between licence levels and categories under the Mortgage Services Act?
- What’s the difference between the terminology used for licences under the MSA compared to the MBA?
- What are the requirements for becoming a principal broker?
- I’m currently a designated individual. Do I have to become a principal broker when the MSA comes into force?
- I am currently a designated individual. What if I don’t want to be the principal broker when the MSA comes into force?
- I want to be licensed as a principal broker when the MSA comes into force. What do I need to do?
- Can I be a principal broker for more than one brokerage? Is there a limit?
- Can a mortgage broker who is not a principal broker be licensed at multiple brokerages?
- What is a Personal Mortgage Corporation?
- I already have a personal services corporation. Do I need a licence for my personal services corporation once the MSA comes into force?
- I’m an accountant or notary. Do I need to get licensed to offer mortgage services in B.C.?
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:
| Description | MBA | MSA |
|---|---|---|
| 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 Broker | Mortgage Broker |
| Individual with regulatory responsibility for the business | Designated Individual | Principal Broker |
Within those licence levels, a person may be licensed within one or more categories by the Rules. The table below outlines the licence categories:
| Category | Description |
|---|---|
| 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. |
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:
Description MBA MSA Business entity that carries on business providing mortgage services through other licensees/registrants Mortgage
BrokerMortgage Brokerage Individual providing mortgage services on behalf of the business Submortgage Broker Mortgage Broker Individual with regulatory responsibility for the business Designated Individual Principal
BrokerTo 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.
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.