New Mortgage Services Act Framework to Tighten Rules by 2026
What was announced?
On July 17, 2025 the Ministry of Finance released a draft regulatory package for the Mortgage Services Act (MSA), outlining new licensing tiers, fitness tests and record‑keeping rules that will apply to mortgage brokers, administrators and private lenders when the Act comes into force in fall 2026 (BC Gov News 2025‑07‑17). The framework responds to several anti‑money‑laundering (AML) gaps flagged by the Cullen Commission in 2022.
Key elements of the framework
- Stricter licensing tiers: Individuals will require separate credentials for brokering, lending and administration, each with graduated education and experience thresholds.
- Enhanced AML oversight: Firms must adopt risk‑based compliance programs and file suspicious transaction reports with both FINTRAC and the newly created Financial Services Authority (FSA) investigations unit.
- Investor disclosure rules: Private mortgage syndicators must provide standardized risk summaries and ensure appraisals are performed by arm’s‑length professionals.
- Consumer restitution fund: A new compensation fund, financed by annual licence fees, will cover losses arising from fraud or misconduct up to $100 000 per claimant.
Timeline
The Ministry has opened a 60‑day public consultation window ending September 15, 2025. Final regulations are expected by spring 2026, with mandatory compliance kicking in October 1, 2026.
Why it matters for REALTORS®, borrowers & investors
- Higher professional bar: Agents who dabble in mortgage referrals will face tougher “fit and proper” tests and continuing‑education requirements, reducing the number of part‑time brokers.
- More transparency: Borrowers will receive a single, plain‑language disclosure form that itemizes fees, rate spreads and conflicts of interest.
- Private lending scrutiny: The framework tightens rules around syndicated mortgages—an area that saw $2.8 billion in BC transactions last year—potentially cooling the most aggressive high‑LTV offerings.
- AML alignment: The Act brings provincial oversight closer to federal OSFI and FINTRAC standards, reassuring institutional investors eyeing the B.C. market.
Industry stakeholders should review the draft rules and submit feedback before the September deadline. Training budgets and compliance systems will need upgrades well ahead of the October 2026 go‑live date.
This article is for informational purposes only. Statistics and market conditions are current as of the publication date and may change without notice. It is not legal or financial advice. Always verify details and consult qualified professionals before making real-estate decisions.
What was announced?
On July 17, 2025 the Ministry of Finance released a draft regulatory package for the Mortgage Services Act (MSA), outlining new licensing tiers, fitness tests and record‑keeping rules that will apply to mortgage brokers, administrators and private lenders when the Act comes into force in fall 2026 (BC Gov News 2025‑07‑17). The framework responds to several anti‑money‑laundering (AML) gaps flagged by the Cullen Commission in 2022.
Key elements of the framework
- Stricter licensing tiers: Individuals will require separate credentials for brokering, lending and administration, each with graduated education and experience thresholds.
- Enhanced AML oversight: Firms must adopt risk‑based compliance programs and file suspicious transaction reports with both FINTRAC and the newly created Financial Services Authority (FSA) investigations unit.
- Investor disclosure rules: Private mortgage syndicators must provide standardized risk summaries and ensure appraisals are performed by arm’s‑length professionals.
- Consumer restitution fund: A new compensation fund, financed by annual licence fees, will cover losses arising from fraud or misconduct up to $100 000 per claimant.
Timeline
The Ministry has opened a 60‑day public consultation window ending September 15, 2025. Final regulations are expected by spring 2026, with mandatory compliance kicking in October 1, 2026.
Why it matters for REALTORS®, borrowers & investors
- Higher professional bar: Agents who dabble in mortgage referrals will face tougher “fit and proper” tests and continuing‑education requirements, reducing the number of part‑time brokers.
- More transparency: Borrowers will receive a single, plain‑language disclosure form that itemizes fees, rate spreads and conflicts of interest.
- Private lending scrutiny: The framework tightens rules around syndicated mortgages—an area that saw $2.8 billion in BC transactions last year—potentially cooling the most aggressive high‑LTV offerings.
- AML alignment: The Act brings provincial oversight closer to federal OSFI and FINTRAC standards, reassuring institutional investors eyeing the B.C. market.
Industry stakeholders should review the draft rules and submit feedback before the September deadline. Training budgets and compliance systems will need upgrades well ahead of the October 2026 go‑live date.
This article is for informational purposes only. Statistics and market conditions are current as of the publication date and may change without notice. It is not legal or financial advice. Always verify details and consult qualified professionals before making real-estate decisions.
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