B.C. mortgage industry sees biggest regulatory update in 50 years | Daily Hive

B.C. mortgage industry sees biggest regulatory update in 50 years to protect homebuyers, fight laundering

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Homebuyers in British Columbia will soon benefit from stronger protections and greater transparency when navigating the mortgage process, thanks to sweeping new rules set to come into effect in Fall 2026.

The Government of B.C. announced today it has finalized regulations under the new Mortgage Services Act, which will modernize oversight of the mortgage industry for the first time in half a century.

“Buying a home is often one of the biggest financial decisions people make in their lifetimes, and it’s important that they have peace of mind,” said Brenda Bailey, B.C.’s minister of finance, in a statement.

“The new framework for the Mortgage Services Act raises standards across the mortgage industry, improves accountability and helps protect both home buyers and lenders, while supporting efforts to crack down on money laundering.”

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The new Mortgage Services Act, introduced in 2022, replaces the outdated Mortgage Brokers Act of 1972. Although the previous legislation had been amended over the years, officials say it failed to keep pace with the increasingly complex and fast-moving housing and financial markets.

The new act expands regulatory requirements and gives the BC Financial Services Authority (BCFSA) enhanced powers to license, investigate, and set conduct standards for mortgage professionals. It establishes four new licensing categories: dealing in mortgages, trading in mortgages, administering mortgages, and mortgage lending.

“The mortgage market has changed dramatically in the 50 years since the Mortgage Brokers Act was passed,” said Tolga Yalkin, CEO and chief statutory officer, BCFSA, in a statement.

“It is larger, more complex and operates at a much faster pace. The Mortgage Services Act will reflect the realities of today’s market to address current risks and will be adaptable to address emerging ones to ensure we can better protect everyone involved.”

Officials say these measures will help ensure homebuyers receive honest, transparent advice and are not unknowingly steered into risky or unfair mortgage agreements.

The changes are also aimed at protecting the broader housing market from money laundering. New rules will strengthen anti-money-laundering oversight, make suspicious transactions easier to detect, and deter criminals from exploiting real estate as a vehicle to hide illicit funds.

Industry groups have welcomed the changes.

“We, as an industry, are in strong support of enhancing consumer protection and combating fraud in the real estate sector, including income-document fraud and money laundering. This has been one of our top advocacy issues, not just in British Columbia, but at a national level,” said Lauren van den Berg, president and CEO of Mortgage Professionals Canada.

Rebecca Casey, president of the B.C. division for the Canadian Mortgage Brokers Association, added, “We look forward to reviewing the final details of the new rules and emphasize the importance of modernizing the regulatory framework to reflect today’s housing and lending environment.”

The new framework is also a direct response to recommendations from the 2022 Commission of Inquiry into Money Laundering in B.C., known as the Cullen Commission, which identified gaps and vulnerabilities in existing regulations.

With more than 7,000 registered mortgage brokers and sub-mortgage brokers in B.C., the province and BCFSA will work together to ensure a smooth transition. The 14-month lead time before the rules come into force is intended to give industry professionals time to prepare and adjust to the new standards.

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