BCFSA has issued guidance on the disclosure forms mortgage brokers must use under British Columbia’s Mortgage Services Act (MSA) and Mortgage Services Rules (Rules).

The guidance is important because the MSA strengthens existing disclosure obligations and introduces standardized forms. Where BCFSA prescribes a form, brokers must use the current BCFSA version exactly as published. The form cannot be customized, reformatted, or altered through a software workflow.

The compliance objective is straightforward: brokers must clearly disclose who they represent, how they are paid, the suitability and material risks of a mortgage, and any relevant interests or conflicts. Those disclosures must also be provided at the correct time. A failure to do so can delay or jeopardize a mortgage transaction and, in some circumstances, permit a lender to refuse to advance funds.

Prescribed Forms and Optional Forms

A prescribed BCFSA form must be used where the Rules require it. Brokers cannot substitute their own version, even if the disclosure content is otherwise the same.

Where no form is prescribed, brokers must still provide the required disclosure. They may use an optional BCFSA form or another format that contains the required information.

BCFSA’s MSA disclosure forms are available through its Mortgage Services Forms resource. Software application providers that use BCFSA’s disclosure forms must also comply with BCFSA’s Forms and Clauses Terms of Use for Software Application Providers.

Individual Forms and Form Packages

Brokers may provide disclosure using individual forms or disclosure form packages.

Form packages are intended to streamline disclosures that arise when a broker presents mortgage options. They do not replace the initial requirement to disclose whether the broker represents the borrower or lender before providing mortgage services.

Disclosure Process for Borrowers

Step 1: Disclose Representation Before Providing Services

Before providing mortgage services to a borrower, a broker must disclose whether the borrower is the broker’s client.

If the broker represents the borrower, the broker must provide:

• Form 1A — Disclosure of Representation to Borrower.

If the broker does not represent the borrower—for example, because the broker represents a lender—the broker must generally provide:

• Form 2A — Disclosure of Risks to Unrepresented Borrower.

Form 2A is not required if the borrower is a “permitted person” under the Rules.

Step 2: Use the Appropriate Borrower Disclosure Package

After considering the borrower’s needs and circumstances and receiving a lender offer, the broker should use the disclosure package that matches the broker’s relationship with the borrower:

• Forms Package #1 — Disclosure to Represented Borrowers, where the borrower is the broker’s client; or
• Forms Package #3 — Disclosure to Unrepresented Borrowers, where the borrower is not the broker’s client.

These packages address material information about the mortgage transaction, including mortgage risks, broker remuneration, and interests or conflicts involving the broker, brokerage, associates, or related parties.

Step 3: Meet the Required Timing

A broker may satisfy the applicable disclosure deadlines by providing the disclosure package when the broker:

1. sends the borrower’s application to lenders, where applicable; and/or
2. presents suitable mortgage options to the borrower.

If disclosures cannot be provided together in a package, the broker may use individual forms but must still meet the deadline that applies to each disclosure.

For consumer mortgages, brokers must also provide total cost of credit and annual percentage rate disclosure required under British Columbia’s Business Practices and Consumer Protection Act. BCFSA does not prescribe a form for this disclosure. It must be provided at least two business days before the borrower signs the mortgage agreement or makes a payment in connection with the mortgage.

Borrower Disclosure Forms at a Glance

Before providing servicesForm 2A — Disclosure of Risks to Unrepresented BorrowerYesNoExplains that the borrower is unrepresented and identifies relevant risks.

When to provide	Disclosure form	Prescribed form required?	Included in Forms Packages #1 and #3?	Purpose
Before providing services	Form 1A — Disclosure of Representation to Borrower	Yes	No	Confirms that the broker represents the borrower.
When presenting options	Form 6A — Disclosure of Suitability and Material Risks to Borrower	Optional	Yes	Explains mortgage suitability and material risks.
When presenting options	Form 4 — Disclosure to Borrower of Expected Remuneration	Yes	Yes	Discloses expected broker compensation.
Promptly	Form 7 — Disclosure to Client of Remuneration	Yes	Yes	Provides compensation transparency for the client.
At the earliest opportunity and at least two business days before signing or entering into the agreement	Form 3A — Disclosure of Interests to Borrower	Yes	Yes	Discloses relevant interests and conflicts.
At least two business days before signing or payment	Total cost of credit / annual percentage rate disclosure	No BCFSA form	No	Explains the full cost of a consumer mortgage.

Disclosure Process for Lenders

Step 1: Disclose Representation Before Providing Services

Before providing mortgage services to a lender, a broker must disclose whether the lender is the broker’s client.

If the broker represents the lender, the broker must provide:

• Form 1B — Disclosure of Representation to Lender, for lending mortgages; or
• Form 1C — Disclosure of Representation to Lender, for trading mortgages.

If the broker does not represent the lender, the broker must generally provide:

• Form 2B — Disclosure of Risks to Unrepresented Lender, for lending mortgages; or
• Form 2C — Disclosure of Risks to Unrepresented Lender, for trading mortgages.

Forms 2B and 2C are not required if the lender is a “permitted person” under the Rules.

Step 2: Use the Appropriate Lender Disclosure Package

The broker should select the disclosure package based on the broker’s relationship with the lender:

• Forms Package #2 — Disclosure to Represented Lenders, where the lender is the broker’s client; or
• Forms Package #4 — Disclosure to Unrepresented Lenders, where the lender is not the broker’s client.

For construction and development mortgages, the broker may also need to provide:

• Form 5A — Addendum for Construction and Development Mortgages.

The lender packages address key transaction information, including the borrower, property, mortgage terms, material risks, broker remuneration, and relevant interests or conflicts.

Step 3: Meet the Required Timing

The broker should provide the complete lender disclosure package when presenting mortgage options to the lender. Form 5A must also be provided where it applies.

If the broker uses individual forms instead of a package, the broker must comply with the deadline for each form.

The timing requirements are important. Under section 8 of the MSA, if a licensee fails to provide the lender information disclosure statement required by section 73 of the Rules, the lender may refuse to advance funds.

Lender Disclosure Forms at a Glance

Before providing servicesForm 2B or Form 2C — Disclosure of Risks to Unrepresented LenderYesNoExplains that the lender is unrepresented and identifies relevant risks.

At required points when offers are deliveredForm 3B — Disclosure of Interests to LenderYesYesDiscloses relevant interests and conflicts.

When to provide	Disclosure form	Prescribed form required?	Included in Forms Packages #2 and #4?	Purpose
Before providing services	Form 1B or Form 1C — Disclosure of Representation to Lender	Yes	No	Confirms whether the broker represents the lender.
When presenting options	Form 6B — Disclosure of Suitability and Material Risks to Lender	Optional	Yes	Explains mortgage suitability and material risks.
Promptly	Form 7 — Disclosure to Client of Remuneration	Optional	Yes	Provides compensation transparency for the client.
Before release or advance of funds	Form 5 — Disclosure of Information Statement to Lender	Yes	Yes	Provides information the lender needs before advancing funds.
Before release or advance of funds, if applicable	Form 5A — Addendum for Construction and Development Mortgages	Yes	No	Provides additional disclosures for construction and development mortgages.

Key Takeaways for Brokerages

Mortgage brokerages should review their processes to ensure that disclosures are generated and delivered at the right stage of every transaction. In particular, brokerages should confirm that they:

• provide representation disclosures before providing mortgage services;
• use the correct disclosure package based on the client relationship;
• use the current, unmodified BCFSA version of each prescribed form;
• identify transactions requiring Form 5A;
• provide consumer-mortgage total cost of credit and annual percentage rate disclosure at least two business days before signing or payment; and
• keep records showing what disclosure was delivered, to whom, and when.

BCFSA has indicated that it will issue further regulatory statements and guidance on MSA disclosure obligations. Brokers should monitor those updates and update their training, software, forms, and compliance procedures accordingly.

View the BCFSA guidance on forms here.