As economic volatility continues to define the mortgage market, regulators are responding with tighter restrictions on mortgage brokers. From updated continuing education requirements in Ontario to a full legislative overhaul in British Columbia, 2026 brings a wave of regulatory changes that will affect how brokers operate and how they’re supervised.
Here’s what mortgage brokers need to know heading into the rest of 2026, and how to stay compliant over the coming year.
What are the regulatory changes you should be aware of in 2026?
Ontario brokers face a March 31 deadline to complete updated continuing education requirements, while FSRA is expanding its examination program with a sharper focus on suitability documentation and private mortgage transactions. In British Columbia, the Mortgage Brokers Act is set to be replaced by the Mortgage Services Act (MSA) in October, requiring brokers to adapt to new licensing categories.
Continuing education requirements expand for Ontario mortgage brokers
In an effort to raise industry standards, Ontario’s Financial Services Regulatory Authority (FSRA) has introduced updated Continuing Education (CE) requirements for all mortgage agents and brokers as part of the 2024–2026 licensing cycle.
The updated requirements mean that brokers need to complete two mandatory CE components by March 31:
Conduct CE: This standard remains the same as previous years. Delivered through FSRA-accredited providers, its focus is ethics, regulatory compliance, and professional conduct. Brokers must complete 7 hours, while agents must complete 5 hours.
Professional CE: This new component requires 10 hours of technical education related to mortgage brokering. Unlike Conduct CE, brokers can choose any educational activities that relate directly to the technical aspects of their work.
It’s important to note that not all professional development qualifies. While courses on legal matters, mortgage fraud, and client needs fit the standard, courses that cover broad topics such as marketing, sales, or general office skills don’t meet the Professional CE standard.
Brokers are responsible for tracking and reporting their Professional CE hours, and FSRA requires that you retain records for four years from the deadline — meaning records submitted for this cycle must be kept until March 31, 2030.
With the deadline fast approaching, brokers who haven’t started should make this a priority over the next month.
FSRA intensifies private lending regulations
Beyond the CE updates, FSRA’s broader supervision strategy for 2025–26 signals that regulatory scrutiny is intensifying — particularly for brokers who deal in private mortgages.
The regulator’s consumer research found that while trust in the mortgage brokering sector has improved since 2022, the share of consumers who identify as financially vulnerable has risen from 22% to 39%. As FSRA noted in its supervision plan: “Now, more than ever, it’s critical that mortgage professionals put consumer protection at the forefront of everything they do.”
FSRA has responded to increased market risk by expanding oversight to include mid-sized brokerages with 100 or more agents and brokers, especially fast-growing firms which may not have necessary compliance controls in place. Exams assess whether brokerages can demonstrate:
- Suitability assessments and proper documentation.
- Adequate know your client processes.
- Accurate disclosure of conflicts of interest.
- Strong brokerage supervision and compliance controls.
- Protection of private mortgage borrowers and investors.
FSRA’s Director, Mortgage Broker Conduct Gina Stephens notes that documentation is key for maintaining regulatory compliance: “In FSRA’s view, you can’t demonstrate that you’re supervising your brokers and agents properly unless there’s documentation on file that demonstrates a true line between the client information and the product.”
Brokers who work with private lenders should pay particular attention to documenting suitability rationale and ensuring borrowers understand the costs, risks, and exit strategy associated with their mortgage to stay ahead of increased enforcement activity.
British Columbia overhauls mortgage broker regulations for 2026
British Columbia is undertaking the most significant overhaul of its mortgage regulation framework in over 50 years. The Mortgage Brokers Act (MBA), in place since 1972, will be repealed and replaced by the Mortgage Services Act (MSA) on October 13, 2026 in an effort to combat money laundering in B.C.’s real estate sector.
The B.C. government approved the MSA’s accompanying rules and regulations on July 14, 2025, which triggered a 15-month transition period leading up to full implementation. During this period, all mortgage professionals will need to complete mandatory education depending on their role.
The new legislative framework introduces several major changes:
New licensing categories: Brokers will need to identify the specific service category they offer (dealing, trading, administering, and/or lending) and apply for each one.
Enhanced disclosure requirements: Brokers will need to provide more comprehensive disclosures to borrowers, including more transparency around fees and services.
Higher consumer protection standards: Brokers will need to comply with higher standards for suitability assessment and documentation.
Stronger enforcement tools: Disciplinary penalties for non-compliance can reach up to $250,000 for individuals and $500,000 for brokerages.
Brokers operating in B.C. should ensure their contact information in BCFSA’s IRIS system is up to date, start reviewing the published MSA Rules and Regulations, and plan for the transition education requirements well ahead of the October deadline.
Now is also the time for brokers to assess which licensing categories their brokerage will need to operate under and to build out their internal compliance infrastructure.
How brokers can stay ahead of 2026 regulations
Across the country, industry regulators are raising the bar on professionalism, documentation, and consumer protection. For brokers who work in the private lending space, these expectations are even higher given the heightened risk and cost that private mortgages carry for borrowers.
Brokers who treat compliance as a foundation for building client trust will be better equipped to navigate these new expectations. That means keeping CE requirements current, documenting suitability assessments thoroughly, maintaining transparent disclosure practices, and partnering with lenders who share their commitment to responsible lending.
At CMI, we believe that a strong regulatory framework benefits everyone in the mortgage ecosystem — borrowers, brokers, and lenders alike. If you have questions about how these regulatory changes may affect your business, or if you’re looking for a private lending partner with a focus on well-structured, transparent mortgage solutions, we’re here to work with you.
Reach out to our team to learn more about how you can navigate regulatory changes and continue to thrive in 2026.
