Personal Mortgage Corporations

Personal mortgage corporations (“PMCs”) allow mortgage services licensees to access the business advantages of incorporation, including income and tax stream planning. PMCs are similar to options available to professionals, such as real estate brokers, dentists, accountants, and lawyers.

• I’m currently registered under the Mortgage Brokers Act and want to provide mortgage services through a PMC when the Mortgage Services Act comes into force. What are the steps I need to take? Is there anything I can do before the Mortgage Services Act comes into force?

  There are two pathways for becoming licensed as a PMC. The pathway that applies to you depends on your personal scenario, and whether you already operate through a personal corporation that is registered as a mortgage brokerage, and whether certain transition steps are completed before key deadlines.

  Scenario 1 – transitioning an existing personal corporation
  Mortgage brokers who already have a personal corporation registered with BCFSA as a mortgage brokerage can wind up that brokerage and transition the same corporation into a licensed PMC. If key steps are completed by May 29, 2026, brokers can access transitional measures and then apply for a PMC licence once the MSA takes effect on October 13, 2026.

  The graphic below highlights the steps required to become a PMC under Scenario 1.

  

  Scenario 2 – applying after the MSA takes effect
  
  Mortgage brokers who do not have a registered personal corporation, or who miss the May 29, 2026, deadline, must follow the full process after the MSA comes into force. This includes incorporating (or updating) a corporation, obtaining name approval, and applying for a PMC licence without access to transitional measures.

  For more information, please review the step-by-step resource How to Incorporate A Personal Mortgage Corporation.

BCFSA strongly recommends obtaining professional accounting and/or legal advice when considering whether to incorporate, amend corporate structure, amend share ownership, or dissolve a company.

Is It Right for You?

Mortgage services licensees thinking about licensing a PMC are strongly encouraged to carefully read the information on PMCs available on the BCFSA Mortgage Services Knowledge Base, and discuss the matter with their Designated Individual (or Principal Broker once the MSA takes effect). Some of the key documents on the BCFSA Mortgage Services Knowledge Base, include:

• ​​Naming of a Personal Mortgage Corporation​

• The Information and Guideline on PMCs via the Mortgage Services Regulatory Index

There are additional reporting requirements for PMCs, as well as additional costs associated with licensing. For an overview, please see ‘Organizational and Service Structure Options under the Mortgage Services Act’.

• Important: Make sure you get independent professional accounting and/or legal advice before applying for licensing as a PMC, to make sure that it is the right choice for you.

What PMCs Can Do, Including Ancillary Services

The primary purpose of a PMC is to provide mortgage services. A PMC may also provide ancillary services that are directly associated with those mortgage services. Specifically, section 27(1)(e) of the Mortgage Services Regulation states that a PMC may not “…conduct any business other than the provision of mortgage services and ancillary services directly associated with the provision of mortgage services”.

In general, the term “ancillary” describes something that is secondary to, and supportive of, a primary entity. Accordingly, a PMC is restricted to providing mortgage services and those services which are subordinate to, and exist to support, the provision of mortgage services.

A PMC cannot provide services whose primary purpose is not to facilitate or further the provision of mortgage services. To put it another way, a PMC may not conduct a business which can be conducted on a standalone basis.

For these reasons, a PMC may not, for example:

• Trade in stocks or bonds, other than modest trading in stocks and bonds that constitute a capital gain (as opposed to income from business) and not so extensive that it is regarded as the business of the PMC; or
• Hold real estate; or
• Engage in the business of real estate development.

Mortgage services licensees with questions or concerns about the allowable activities of a PMC are advised to obtain independent accounting and/or legal advice.

Choosing a Name

The name of a PMC must comply with BCFSA’s requirements and be approved by BCFSA, as required under section 24(f) of the Mortgage Services Regulation.

For more information on naming requirements for PMCs, please see the Regulatory Statement, Naming of a Personal Mortgage Corporation​. In addition, the Information and Guideline on PMCs via the Mortgage Services Regulatory Index also provides information on this topic.

Advertising

All advertising must be done with reference to the PMC. Licensees with PMCs must use the full term “personal mortgage corporation” in all advertising. They cannot use abbreviations like “PMC.” All advertising must follow the Mortgage Services Act, the Mortgage Services Regulation (“the Regulation) and the Mortgage Services Rules.

More information on advertising can be found on BCFSA’s Mortgage Services Knowledge Base.

“It’s Personal!”: PMCs and Controlling Individuals

A PMC must be just that: personal. PMCs are subject to strict restrictions regarding ownership and control. The mortgage services licensee who wishes to provide mortgage services through a PMC must be the person who controls the PMC — known as the “Controlling Individual.”

The Controlling Individual must be:

• Licensed at the same level and for the same categories of mortgage services as the PMC.
• Licensed to the same brokerage as the PMC.
• The owner of all the voting shares of the PMC.
• The only director and officer of the PMC.

Non-Voting Shareholders

A PMC may have non-voting shares, which may only be owned by yourself (the controlling individual) or an affiliated person. An affiliated person means:

• The spouse of the controlling individual;
• A child of the controlling individual;
• A corporation, in which all the shares are beneficially owned by one or more of the following: the controlling individual, their spouse, and/or their child; or,
• A trust, in which all the beneficiaries are one or more of the following: the controlling individual, their spouse, and/or their child.

Remuneration

Under the PMC model, remuneration for mortgage services flows from the brokerage to the PMC, rather than directly to the controlling individual (who is either the mortgage broker or Principal Broker). The PMC may then pay remuneration to the controlling individual, provided that all requirements in section 27 of the Regulation are met.

Effective April 2027, new requirements relating to Teams come into effect. After those requirements come into effect, where mortgage services licensees have established Teams, remuneration must be distributed directly by the brokerage. In other words, each licensed Team member (or their respective PMC) must be paid separately by the brokerage.

Frequently Asked Questions

• Can a step-child be the beneficial owner of the non-voting shares?

  Yes. There is no restrictive definition of child in the Regulation.

• Can the voting shares of a PMC be owned by another corporation?

  No. Pursuant to section 24(b) of the Regulation, all voting shares of the PMC must be legally and beneficially owned by a single individual who is the controlling individual of the PMC.

• Can the non-voting shares of the PMC be owned by another corporation?

  Yes, but there are restrictions. Pursuant to section 24(e) of the Regulation, each non-voting share can be legally and beneficially owned by an affiliated person of the controlling individual. An affiliated person can be a corporation, if all the shares of the corporation are beneficially owned by one or more of the following: the controlling individual, the spouse of the controlling individual, and/or a child of the controlling individual.

• Can the non-voting shares of the PMC be held by a trust?

  Yes, but there are restrictions. Pursuant to section 24(e) of the Regulation, each non-voting share can be legally and beneficially owned by an affiliated person of the controlling individual. An affiliated person can be a trust, if all the beneficiaries are one or more of the following: the controlling individual, the spouse of the controlling individual, and/or a child of the controlling individual.

• Can a PMC Invest Monies Earned from Providing Mortgage Services?

  Yes, but there are restrictions. A PMC cannot operate an investment or trading business “on the side”. Any investing must be modest and clearly secondary to its main purpose — receiving payment for mortgage services.

• Can a PMC pay money received in relation to mortgage services that it provides to an affiliated person?

  Yes. There are no restrictions against a PMC from paying money it receives from mortgage services to an affiliated person as defined in the Regulation.

• Can a corporation that owns the non-voting shares of a PMC invest in real estate?

  Yes. There are no restrictions with respect to an affiliated person of a PMC from investing in real estate or other investments. Only the PMC is restricted and must only conduct business by providing mortgage services and ancillary services directly associated with providing mortgage services.

• Can Monies Held by the PMC be Lent out by the Controlling Individual for a Mortgage?

  Yes, but there are restrictions. Under section 40 of the Mortgage Services Regulation, a licensee, which includes a PMC, may provide mortgage lending without acting through a mortgage brokerage, if all of the following conditions are met:

  • The licensee is lending their own money or their spouse’s money only.
  • The licensee is not lending on behalf of anyone else.
  • The licensee is not carrying on the business of providing the mortgage service of mortgage lending (e.g., regularly in the business of mortgage lending).
  • The licensee provides written disclosure to their Principal Broker that includes:
    • Confirmation that the loan meets the conditions above
    • The property being used as security
    • The mortgage amount and term
    • The identities of the borrowers

  It’s not yet clear whether these requirements will change when the second phase of the MSA is introduced for mortgage lender license, which will happen after the MSA comes into force. Under the MSA, a mortgage lender is someone who lends their own money but is 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.

• Can a mortgage brokerage licence a PMC?

  No. Section 23 of the Regulation states that a PMC may be licensed as a Principal Broker or mortgage broker. It does not include a brokerage.

• Can two licensees married to each other share a PMC and own the voting shares?

  No. There can only be one licensee as the controlling individual who owns the voting shares. Therefore, the spouse who is also the licensee would have to incorporate their own PMC.

• Can a PMC own the shares of a corporation that owns the brokerage to which the PMC is licensed?

  No. A PMC cannot conduct business which can be conducted on a stand-alone basis. A PMC can only provide mortgage services and ancillary services directly associated with providing mortgage services.

• Does BCFSA require that the Articles of Incorporation of the PMC corporation be restricted in any way?

  No. The Regulation regarding PMC is silent regarding the contents of the Articles. So, providing the corporation meets the attributes set out in section 24 of the Regulation, the contents of the Articles would be up to the submitting party of the application for licensing as a PMC.

• Does the PMC name need to be approved by BCFSA?

  Yes. Section 24(f) of the Regulation requires that a PMC name be approved by the Superintendent and include the full term “personal mortgage corporation.”

  For more information on PMC naming requirements and approvals processes, please see the Regulatory Statement: Naming a Personal Mortgage Corporation. In addition, the Information and Guideline on PMCs via the Mortgage Services Regulatory Index also provides information on this topic.

• Does the PMC name need to include the licensee’s legal name?

  No. The PMC name does not need to include the licensee’s legal name; however, it must include the full term “personal mortgage corporation”. While not required, using the licensee’s legal name or a short form version of it, such as Jane Doe Personal Mortgage Corporation, is strongly recommended, as it aligns with the real estate industry and may help expedite BCFSA approval.

  For more information on PMC naming requirements and approvals processes, please see the Regulatory Statement: Naming a Personal Mortgage Corporation. In addition, the Information and Guideline on PMCs via the Mortgage Services Regulatory Index also provides information on this topic.

• Can a PMC employ staff?

  Yes. However, all mortgage services provided by the PMC must be performed exclusively by the controlling individual, and any other persons employed by the PMC cannot be licensees.