With the new Mortgage Services Act (the “MSA”) being introduced in October 2026, individual submortgage brokers will soon be able to use Personal Mortgage Corporations (“PMCs”), giving them a transparent, compliant way to structure their business for tax efficiency and professional flexibility.

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What is a Personal Mortgage Corporation?

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A Personal Mortgage Corporation allows a licensed submortgage broker to incorporate and operate through their own company, while still working under a licensed brokerage. This modernizes the industry and brings mortgage brokers in line with other professionals like realtors.

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Key Benefits:

1. Commissions can be paid directly by the brokerage to the PMC. The individual submortgage broker can then pay themselves salary or dividends from their PMC.
2. Brokers gain tax planning and structuring options
3. Full regulatory oversight remains in place
4. Co-brokering workarounds are no longer needed

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Important Notes:

• Each PMC must be 100% owned and controlled by one licensed submortgage broker
• Both the submortgage broker and the PMC must hold licences under the MSA
• PMCs can’t operate independently. They remain tied to a brokerage.
• All compliance obligations apply equally to both the submortgage broker and the PMC. If an individual’s licence is suspended or cancelled, the PMC’s licence is automatically suspended or cancelled as well.

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Existing brokers and lenders must be licensed (or claim an exemption) by October 2026.

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For full details, see the guidance recently released by BCFSA.

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