Introduction
The British Columbia Mortgage Services Act (MSA) is coming into effect on October 13, 2026, and it's set to transform the mortgage industry landscape in the province. Despite what some may say about minimal changes, this legislation will fundamentally alter how mortgage professionals operate in BC.
In this critical episode of Broker Armour, Justin Nota breaks down three essential components every BC mortgage professional must understand: educational requirements, the May 29th brokerage wind-up deadline, and the new Personal Mortgage Corporation (PMC) structure.
Educational Requirements: Your Path to MSA Compliance
Every licensed mortgage professional in British Columbia must complete MSA education through BCFSA and Saunders. The education is structured in tiers based on your intended role:
MSA Getting Started Course
This foundational course is mandatory for every person with a mortgage license in BC. No exceptions.
MSA New Mortgage Broker Course
Despite the name, this isn't just for new brokers. This course is required for all mortgage professionals who won't be becoming principal brokers under the new system.
MSA Principal Broker Courses
Two specialized courses exist for those planning to become principal brokers - the individuals who will run brokerages and serve as chief compliance officers under the MSA.
Critical deadline: All education must be completed by September 22nd, though Justin recommends finishing by September 1st to avoid last-minute complications. BCFSA will not license professionals who haven't completed their required education.
The May 29th Brokerage Wind-Up Deadline
Current Designated Individuals (DIs) with registered corporations face a crucial decision before May 29th: become a full brokerage or transition to a Personal Mortgage Corporation (PMC).
Understanding Your Current Status
If you're currently getting paid into a corporate account and your BCFSA search shows your license under a numbered company or business name, you're a DI with a registered corporation and must make this choice.
The Wind-Up Process
To transition to a PMC before the deadline, you need three forms (two requiring notarization):
- Acknowledgement Form: Confirms you're deregistering your current corporation with BCFSA
- Form 17: Brokerage wind-up form (requires notarization)
- Form 12: Absence of trust account form (requires notarization)
The process involves two IRIS portal submissions: terminating your current mortgage broker entity and transferring your subbroker license to your new brokerage.
Benefits of Meeting the May 29th Deadline
Completing the wind-up before May 29th provides two key advantages:
- Potential pro-rated refund on your current registration fees
- Ability for your new brokerage to continue paying your existing corporate account between wind-up and PMC activation
Miss this deadline, and you'll face personal tax implications as brokerages can only pay individuals once corporate accounts are deregistered.
Personal Mortgage Corporations (PMCs): The New Reality
PMCs are the mortgage industry's answer to real estate Personal Real Estate Corporations (PRECs). However, they're strictly limited in scope.
What PMCs Can and Cannot Do
A PMC exists for one purpose: receiving mortgage remuneration in a corporate structure. That's it. PMCs cannot:
- Hold real estate or engage in development
- Conduct substantial trading or investment activities
- Pay licensed individuals (this is a major change affecting many current setups)
"The only entity under the MSA that can pay a licensed individual is the mortgage brokerage that license is under," emphasizes Justin.
This restriction is causing significant industry disruption, particularly for brokers who currently pay licensed staff salaries through their corporations.
PMC Naming Requirements
PMC names must include "Personal Mortgage Corporation" spelled out in full - no abbreviations. While using your license name is recommended, there's some flexibility for more corporate-sounding names, though approval isn't guaranteed.
Justin recommends securing two name reservations through BC Registries 56 days before October 13th (starting August 18th) to provide options during the approval process.
Ownership Structure
As the licensee, you must own 100% of voting shares. However, non-voting shares can be owned by:
- Your spouse
- Your children
- Corporations wholly owned by you, your spouse, or children
- Trusts with beneficiaries limited to you, your spouse, or children
The Financial Reality
PMCs aren't free. At $2,100 per two-year cycle, they stack on top of your $2,100 mortgage broker license. For broker-owners wanting both a PMC and brokerage license ($3,100), the total becomes $7,300 every two years.
Factor in additional accounting costs for corporate tax filings, and the financial commitment becomes substantial. Justin emphasizes the importance of calculating whether the tax benefits justify these costs.
Key Takeaways
- Complete your MSA education by September 1st to avoid licensing delays
- If you're a current DI, decide between brokerage and PMC routes before May 29th
- PMCs are strictly limited to receiving mortgage remuneration - they're not general business corporations
- The restriction on PMCs paying licensed individuals will require significant operational changes for many brokers
- Calculate the total cost of PMC ownership, including licensing fees and accounting costs, against your tax savings
- Secure multiple name reservations for your PMC to ensure approval
Why You Should Listen
This episode is essential listening for every BC mortgage professional. The MSA represents the most significant regulatory change in the province's mortgage industry, and the deadlines are fast approaching. Justin's practical, detailed breakdown helps you navigate complex decisions that will impact your business structure and operations for years to come.
Whether you're considering a PMC, planning to become a principal broker, or simply need to understand the changing landscape, this episode provides the clarity and actionable steps you need to prepare for October 2026.
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