The Mortgage Services Regulation introduced by the Province of British Columbia under the Mortgage Services Act, outlines a new regulatory framework for mortgage-related activities in the province. The regulation provides key definitions, identifies what constitutes mortgage lending—specifically including the purchase of debt obligations secured by real estate—and sets conditions under which individuals or entities may be exempt from licensing requirements under the Act.

Several exemptions are detailed for professionals already regulated under other legislation. Investment dealers registered under the Securities Act are exempt when engaging in specific mortgage-related activities involving syndicated mortgages, provided they adhere to strict conditions. These conditions define what qualifies as a “qualified syndicated mortgage,” including that it be tied to residential property with no more than four units, not involve development financing, and maintain a loan-to-value ratio below 90%. The exemption permits investment dealers to solicit, advise on, or facilitate mortgage transactions if such activities fall within regulated securities practices.

Real estate licensees operating under the Real Estate Services Act are exempt when facilitating vendor take-back mortgages during real estate transactions, assuming they do not present themselves as mortgage service providers beyond this context. Similar exemptions are extended to reporting agencies governed by the Business Practices and Consumer Protection Act, notaries performing services within the scope of their professional permissions under the Notaries Act, and accountants registered under the Chartered Professional Accountants Act, provided they offer mortgage advice as part of their accounting services.

Federally regulated entities such as cooperative credit societies and retail associations are also exempt from provincial licensing, reflecting federal jurisdiction over their operations. Additionally, directors, officers, and employees of exempt entities are themselves exempt if their mortgage services are rendered internally or on behalf of an affiliate.

The regulation also introduces a fee schedule for services payable to the regulatory Authority. Fees relate to licensing, amendments, and other administrative processes. In parallel, it defines expenses recoverable by the superintendent in the event of investigations, hearings, or disciplinary actions. These include hourly rates for investigators, auditors, and legal professionals, as well as per diem rates for hearings and witness appearances.

Interest on unpaid debts to the Authority is addressed in detail. Interest begins accruing once an invoice or request is delivered or when an administrative penalty becomes payable. The regulation sets a three-month floating interest rate at three percent above the government’s principal banker’s prime lending rate and mandates monthly compounding. A 30-day grace period is provided, during which timely payment can be made without interest. Interest ceases upon receipt of payment, and a minimum interest amount of $5 applies.

British Columbia (351/2025) July 18, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.