Big changes are coming for B.C.’s mortgage industry.

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The new Mortgage Services Act (MSA) officially takes effect October 13, 2026, with several provisions already in force. This major overhaul replaces the decades-old Mortgage Brokers Act, bringing tougher licensing rules, stronger oversight, and higher penalties, all of which are aimed at modernizing the sector and addressing professional recommendations on money laundering.

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The BC Financial Services Authority (BCFSA) will now have expanded powers to set rules, enforce compliance, and investigate misconduct through a new Superintendent of Mortgage Services. The MSA introduces four new licence classes (brokerage, principal broker, broker, and lender), expands what qualifies as “mortgage services,” and sets much higher standards for education, suitability, and recordkeeping.

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Private lenders will require their own licenses, and mortgage brokers will be able to incorporate their own Professional Mortgage Corporations for tax planning purposes, similar to what realtors are already able to do.

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Penalties have also skyrocketed - up to $500,000 for disciplinary actions and $2.5 million for offences.

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With a 15-month transition period already underway, every mortgage professional in B.C. needs to prepare for the shift to this new regulatory regime.