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Guideline on Personal Mortgage Corporations

Guideline on Personal Mortgage Corporations

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Purpose

The provision of mortgage services in B.C. is governed by the Mortgage Services Act (MSA), Mortgage Services Regulation (Regulation), and Mortgage Services Rules (Rules). If you are an individual licensed to provide mortgage services in B.C. and want to set up a personal mortgage corporation (PMC), these guidelines will help you understand the associated requirements. For further information on licensing a PMC, please see BCFSA’s Mortgage Services Knowledge Base.

Background

PMCs are corporations, as defined by the Business Corporations Act, which allow mortgage services licensees to access the business advantages of incorporation, including income and tax planning. In considering whether to establish a PMC, a licensee should:

  • Review these guidelines carefully;
  • Read the relevant sections of the Regulation and Rules, and the associated regulatory instruments on BCFSA’s Mortgage Services Knowledge Base;
  • Talk to their principal broker;
  • Be aware of extra reporting and costs involved with licensing a PMC; and
  • Obtain professional advice, such as from a lawyer and/or accountant, on whether a PMC is a good fit for their business.

These guidelines will provide key considerations with respect to:

  1. Naming a PMC;
  2. Advertising as a PMC;
  3. Receiving remuneration as a PMC;
  4. Transferring to another mortgage brokerage; and
  5. Terminating a PMC.

Guidelines

Naming a Personal Mortgage Corporation

To establish a PMC, licensees must follow the requirements outlined below and apply to BC Registries to reserve and secure their intended PMC name. For further information on naming a PMC, see BCFSA’s Mortgage Services Knowledge Base.

The legal name of a personal mortgage corporation must include both:

  • The name of the corporation, as approved by BCFSA; and
  • The words “personal mortgage corporation” (no abbreviations).

No other words or phrases are permitted.

Prior to submitting an approval request to BCFSA, licensees must first apply to BC Registries to reserve their intended PMC name. BC Registries will reserve an applicant’s name for 56 days upon conditional approval of the name. Note that BC Registries’ conditional name approval does not guarantee the Superintendent of Mortgage Services’ (Superintendent) approval of the PMC name.

Once an applicant receives conditional approval from BC Registries, they must submit a request for approval of the PMC name to BCFSA via IRIS. If the Superintendent approves the submitted PMC name, BCFSA will provide the applicant with documentation of this approval, which the applicant must then submit to BC Registries.

In order for the Superintendent to approve the proposed PMC name, it must not be the same as or seem to be the same as another approved PMC name, or be confusing or misleading to the public. In addition, the proposed name must not contain a false or misleading statement or representation. For example, licensees must avoid making statements that cannot be qualified, such as claiming to be “North Shore’s #1 Mortgages.” Lastly, the name cannot, in the opinion of BCFSA, undermine public confidence in the mortgage industry, bring the industry into disrepute, or be considered contrary to the best interest of the public.

BCFSA strongly recommends, though does not require, that licensees propose PMC names that include the licensee’s full legal name, or a short form of their legal name, along with the required term “personal mortgage corporation.” For example, Jane Doe Personal Mortgage Corporation. This naming convention aligns with those used in the real estate industry and is likely to meet the naming convention requirements, which may reduce the time required for BCFSA approval.

Once the PMC name is approved by BCFSA and finalized with BC Registries, licensees may apply for a PMC licence via IRIS. The Superintendent may approve the PMC licence on receipt of (a) a completed application for a PMC licence and name submitted via IRIS, and (b) any applicable application fee specified in the Regulation.

For a step-by-step guide to naming a PMC, see BCFSA’s Mortgage Services Knowledge Base.

Transition from MBA to MSA: Temporary Naming Procedure1

Temporary measures regarding PMC naming requirements have been established to facilitate PMC licensure compliance under the MSA. These temporary measures regard submortgage broker registrants under the previous Mortgage Brokers Act (MBA) who established corporations registered as mortgage brokerages under the MBA and wish to apply for a PMC licence under the MSA.

MBA registrants who wind up their brokerage under the MBA and submit a signed Acknowledgement Form to BCFSA by May 29, 2026 will not be required to change their PMC’s legal name to meet the above-noted naming requirements until the end of their initial MSA licensing term. This means that by their first licence renewal date under the MSA, the PMC’s legal name must comply with the naming requirements noted above.

More information on these temporary measures can be found on BFSA’s website. 

1 This section of the guideline will be removed on October 13, 2028.  

Changing the Name of a PMC

If a licensee chooses to change the name of their licensed PMC, the approval process is fairly similar to that of originally naming their PMC. To change the name of a PMC, licensees must follow the requirements outlined in this guideline and apply to BC Registries to reserve and secure their intended PMC name.

Prior to submitting an approval request to BCFSA, licensees must first apply to BC Registries to reserve their intended PMC name. BC Registries will reserve an applicant’s name for 56 days upon conditional approval of the name. Note that BC Registries’ conditional name approval does not guarantee the Superintendent’s approval of the PMC name.

Once an applicant receives conditional approval from BC Registries, they must submit a request for approval of the PMC name to BCFSA via IRIS. If the Superintendent approves the submitted PMC name, BCFSA will provide the applicant with documentation of this approval, which the applicant must then submit to BC Registries.

In order for the Superintendent to approve the proposed PMC name, it must not be the same as or seem to be the same as another approved PMC name, or be confusing or misleading to the public. In addition, the proposed name must not contain a false or misleading statement or representation. Lastly, the name cannot, in the opinion of BCFSA, undermine public confidence in the mortgage industry, bring the industry into disrepute, or be considered contrary to the best interest of the public.

Once the new PMC name is approved by BCFSA and finalized with BC Registries, the licensee must submit a Request for Name Change of Personal Mortgage Corporation form to BCFSA via IRIS. Applicants will be asked to attach proof that their name request was approved by BCFSA and BC Registries, along with the name change form. The Superintendent may approve the PMC licence on receipt of

  1. a completed application for a PMC name submitted via IRIS,
  2. a completed Request for Name Change of Personal Mortgage Corporation form submitted via IRIS, and
  3. any applicable application fee specified in the Regulation.

Advertising as a Personal Mortgage Corporation

Licensees with PMCs must use the full “personal mortgage corporation” term in all advertising. They cannot use abbreviations like “PMC.” Once a PMC is established, it is the PMC—not the individual licensee—that is authorized to provide mortgage services on behalf of the brokerage. Accordingly, all advertising must clearly reflect the PMC as the service provider.

All PMC advertising must follow BCFSA’s advertising rules. More information on advertising can be found in the Knowledge Base.

Personal Mortgage Corporation Remuneration

Individual mortgage services licensees can only be paid through their licensed brokerage. If you operate under a PMC, it is the PMC that is providing the mortgage services, so remuneration for mortgage services must be paid to the PMC directly. If you are part of a mortgage services team and also operate a PMC, the brokerage must continue to pay each member (or their PMC) separately.

Principal Broker Responsibilities

If a principal broker has a PMC, they must ensure payments go to the PMC. They must also make sure other licensees with PMCs are paid through the PMC and not directly to any personal accounts.

Transfers

Once a PMC has been licensed, any future changes to your individual licence must be done in conjunction with the PMC licence. This can be done through IRIS, where a licensee may apply for changes to their PMC licence and their individual licence at the same time.

If a licensee wishes to transfer to another mortgage brokerage, they must apply to transfer both their individual licence and the licence of the PMC to the new brokerage. When transferring to a new brokerage, a licensee may also choose not to transfer their PMC licence if they no longer wish to be licensed as a PMC (see information below for terminating a PMC licence).

Terminating a PMC

If a licensee no longer wishes to be licenced as a PMC, they must follow these steps to terminate the PMC licence:

  1. Inform their principal broker that they would like to terminate the PMC licence. And then make their submission to do so in IRIS.
  2. The licensee’s record will be amended in IRIS to reflect that they are now only individually licensed and no longer licenced with a PMC.

To find out about the legal requirements for dissolving a corporation, visit the BC Corporate Registry.

Applicable Section of Mortgage Services Act, its Regulations, or the Mortgage Services Rules

MSA Regulation

s. 22 [Definitions] 

s. 23 [Personal mortgage corporations] 

s. 24 [Corporate qualifications] 

s. 25 [Licensing of personal mortgage corporation and its related controlling individual] 

s. 26 [Application for personal mortgage corporation licence] 

s. 27 [Relationship between personal mortgage corporation and controlling individual] 

s. 28 [Corporation must maintain attributes] 

s. 29 [Licences of corporation and controlling individual to reflect each other] 

s. 30 [Application of discipline and enforcement provisions] 

MSA Rules

s. 28 [Personal mortgage corporation must give notice of business changes] 

s. 53 [Licensee names] 

s. 55 [Restrictions and requirements] 

1 This section of the guideline will be removed on October 13, 2028.