Last reviewed: 9 October 2026
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British Columbia’s move from the Mortgage Brokers Act to the Mortgage Services Act, explained
Our overview of how Canadian mortgage broker regulation works names the BC Financial Services Authority (BCFSA) as the province’s regulator. What that overview doesn’t cover is that the law BCFSA has administered, the Mortgage Brokers Act, is being replaced by a differently built statute. This page sets out what the two Acts say, and what has and has not yet taken effect.
What’s changing, and when
The Mortgage Services Act received Royal Assent on November 3, 2022. Section 86 repeals the Mortgage Brokers Act, R.S.B.C. 1996, c. 313, and section 105 provides that the Act comes into force by regulation of the Lieutenant Governor in Council.[1] BC Laws’ version of the new Act, current to September 22, 2026, shows its Parts 1 to 5 and the first transitional sections as not in force, and the former Act, current to the same date, still in the statute book.[1][3] Order in Council 350, approved July 14, 2025, orders that effective October 13, 2026 the Mortgage Services Act is brought into force, “except the definition of ‘mortgage lender’ in section 1 and sections 3 (3), 9 (1) (d) and (3) (b), 15 (2), 24 (2) (b) and 66 (1) (c)”, and that the Mortgage Brokers Act Regulations, B.C. Reg. 100/73, are repealed that day.[4] The Mortgage Services Regulation (Order in Council 351) and the Mortgage Services Rules (Order in Council 352) are made effective the same day.[5][6]
Old and new, side by side
| Mortgage Brokers Act (being repealed) | Mortgage Services Act (as passed) | |
|---|---|---|
| Who administers it | A Registrar of Mortgage Brokers, with BCFSA named as the Authority.[3] | A Superintendent of Mortgage Services, appointed by the board of directors of BCFSA.[2] |
| What is registered or licensed | A “mortgage broker” (a person defined by activity) and a “submortgage broker” (a person employed by, or a director or partner of, a mortgage broker who does those activities).[3] | Three licence levels in force on October 13, 2026: mortgage brokerage, principal broker and mortgage broker. A fourth, mortgage lender (section 9 (1) (d)), is excluded from that commencement.[2][4] |
| What activity triggers the rules | Lending as a business, holding oneself out as a mortgage broker, buying and selling mortgages, receiving $1,000 or more in fees in a year, lending on 10 or more mortgages in a year, or collecting on mortgages.[3] | “Mortgage services”: dealing in mortgages, trading in mortgages, mortgage lending, and administering mortgages, each defined in the Act.[2] |
| Individual qualification | Set through the registrar’s registration process. | Good reputation and suitability; for a new individual applicant, at least 19 years of age and the education and experience the rules set.[2] |
How the new structure works
Under the new Act a mortgage brokerage must have one or more principal brokers licensed in relation to it, and may provide only the mortgage services its principal broker’s licence permits. A principal broker acts for the brokerage for all purposes under the Act and is responsible for the control and conduct of its mortgage business, including supervision of its mortgage brokers.[2] A mortgage broker provides mortgage services under a principal broker’s supervision.[2] Each principal broker or mortgage broker is licensed in relation to a single brokerage and engaged by it, may not provide services on behalf of anyone else, and may not accept remuneration for mortgage services from anyone other than that brokerage; the rules may allow a principal broker to be licensed for more than one affiliated brokerage.[2]
Licences are linked. If a brokerage’s licence becomes inoperative or is suspended or cancelled, the licences of its related licensees become inoperative; if the only principal broker’s licence is lost, the brokerage’s and its mortgage brokers’ licences become inoperative, subject to the rules; and an individual who ceases to be engaged by the brokerage has an inoperative licence.[2] The Act also provides for a separate mortgage lender licence, but Order in Council 350 leaves that licence level, the definition of “mortgage lender” and sections 3 (3) and 15 (2) out of the October 13 commencement.[2][4] For the first three levels, the Rules establish licence categories for dealing in mortgages, trading in mortgages, administering mortgages, and mortgage lending only on behalf of the licensee’s related brokerage when that brokerage is a party to the transaction.[6]
Transition for existing registrants
Registration under the old Act does not by itself carry over to a licence under the new one. BCFSA announced mandatory transition education for current registrants, with the courses depending on whether the registrant is moving to a principal broker or a mortgage broker licence, and set September 22, 2026 as the completion deadline; that date has passed. BCFSA has said that a registrant who did not complete the education will not be issued a licence under the new Act. The Act itself does not set that deadline: it lets the Lieutenant Governor in Council make transitional regulations moving matters from the registrar to the superintendent and from registration to licensing.[2]
What this means if you’re checking a BC broker right now
Until the new Act takes effect, the former Act’s registration structure is the one in the statute book, and BCFSA’s lookup is where to check status; see our guide to checking a Canadian mortgage broker’s license. After the switch, expect the same regulator but new licence level names on the record. Under section 62 of the Mortgage Services Rules, a mortgage brokerage must maintain errors and omissions insurance with extended coverage for loss from fraudulent acts, sufficient to pay at least $500,000 for any single occurrence and $1,000,000 for all occurrences in a 365-day period, and must immediately notify the superintendent if the insurance is cancelled or not renewed, if coverage falls below that minimum, or if it makes a claim under the policy.[6] For how other provinces handle insurance, see E&O insurance requirements by province.
Correction (9 October 2026): the earlier version of this page said BCFSA had stated that a Designated Individual under the old Act does not automatically become a Principal Broker, and described the former Act as registering a brokerage as a “Mortgage Broker” and an employee as a “Submortgage Broker”. The page now describes the two Acts from their own text: under the former Act both terms are defined by activity and employment, as shown in the table. The earlier version also treated September 22, 2026 as upcoming; that date has passed. See the updates log.