Mortgage Broker

A mortgage broker is a licensed professional who arranges mortgages by shopping a borrower's application across multiple lenders—including banks, credit unions, monoline lenders, and private lenders—to find competitive rates and terms. In BC, mortgage brokers are licensed and regulated by the British Columbia Financial Services Authority (BCFSA) under the Mortgage Brokers Act and the Mortgage Services Act (the latter coming into force in 2026—verify current implementation date). Licence status can be verified through BCFSA's public registrant search at www.bcfsa.ca.

Mortgage brokers in British Columbia are regulated by the British Columbia Financial Services Authority (BCFSA), which oversees licensing, conduct, and compliance under the Mortgage Brokers Act and the Mortgage Services Act (as of 2026-07-27 — verify current). BCFSA maintains a public registry of all licensed mortgage brokers and submortgage brokers. The former regulator, the Financial Institutions Commission (FICOM), merged into BCFSA on August 1, 2021 (as of 2026-07-27 — verify current).

On prime mortgage deals, mortgage brokers are typically paid a commission by the lender who funds the mortgage; the borrower usually pays no direct fee in these cases. On private mortgages and certain non-prime deals, the borrower may pay a brokerage fee, which must be disclosed to the borrower in writing under BCFSA Rules and the Mortgage Brokers Act. Verify current fee structures and disclosure requirements with a licensed mortgage broker or BC lawyer before proceeding.

In most prime mortgage transactions (lending by banks, credit unions, and major institutional lenders), the lender pays the broker's commission, so the borrower does not pay the broker directly. For private or non-prime mortgages, the borrower may be charged a brokerage fee, which must be disclosed in writing before the borrower commits, as required under the Mortgage Brokers Act and BCFSA Rules. Verify the fee arrangement in your written service agreement with your broker before signing.

Yes. The British Columbia Financial Services Authority (BCFSA) maintains a public registrant search tool on its website (www.bcfsa.ca) where you can confirm that a mortgage broker or submortgage broker holds a valid licence. Verifying licensure is strongly recommended before engaging any mortgage intermediary. The Mortgage Brokers Act and Mortgage Services Act require all persons arranging mortgages to be licensed unless specifically exempt.

Mortgage brokers commonly serve self-employed borrowers, applicants with complex or non-traditional income documentation, buyers of second or investment properties, and applicants whose primary bank has declined their application. Brokers can access a wider range of lenders—including credit unions, monoline lenders, and private lenders—than an individual borrower typically can on their own. There is no restriction on who may use a broker; any borrower may choose to engage a licensed mortgage broker in BC.

A bank mortgage specialist works for a single financial institution and can only offer that institution's mortgage products and rates. In contrast, a BC-licensed mortgage broker is an independent intermediary who can submit your application to multiple lenders (banks, credit unions, monoline lenders, private lenders) and is regulated by BCFSA under the Mortgage Brokers Act and Mortgage Services Act. Brokers owe duties of disclosure and fair dealing to the borrower as set out in BCFSA Rules.

Yes. Under the Mortgage Brokers Act and BCFSA Rules, mortgage brokers must provide written disclosure of material facts, conflicts of interest, and the nature of their relationship with lenders before the borrower enters into a mortgage. This includes disclosure of how the broker is compensated and any fees the borrower will be charged. Verify that you receive and understand all written disclosures before signing any mortgage documents.

Using a mortgage broker does not directly affect your Property Transfer Tax (PTT) liability, which is governed by the Property Transfer Tax Act, RSBC 1996, c. 378, and is based on the fair market value of the property and your buyer status (e.g., first-time buyer, foreign buyer). A broker may help you secure a competitive mortgage rate by shopping multiple lenders, but rates depend on each lender's underwriting, your credit profile, and market conditions at the time. Verify current PTT rates and exemptions with a BC lawyer or notary before completing your purchase.

The Mortgage Services Act is scheduled to replace the Mortgage Brokers Act and modernize the regulatory framework for mortgage brokers in British Columbia (implementation expected in 2026—verify current status with BCFSA). Both Acts are administered by the British Columbia Financial Services Authority (BCFSA). Until the Mortgage Services Act is fully in force, mortgage brokers continue to be licensed and regulated under the Mortgage Brokers Act and BCFSA Rules.