As brokerages transition from the former Mortgage Brokers Act approach to the Mortgage Services Act (MSA) framework, it’s important to distinguish between a licensed branch office and a “home office” (residential office). The distinction matters because it can drive separate licensing and renewal fees for each location.
1) “Branch Office” (licensed business premises)
A branch office is a premises that is identified in your mortgage brokerage licence as a branch office from which the brokerage may provide mortgage services under the licence.
Fee impact: If a location is licensed as a branch office, it can carry its own branch office licence and its own renewal fee—separate from the head office.
2) “Home Office” is treated as a “Residential Office” (a permitted type of office with added conditions)
A “home office” is not a separate licence level. Under the MSA framework, it is generally treated as a “residential office,” which may be used as a head office or branch office only if: (a) the office is located in the residence of a related principal broker; and
(b) applicable local government bylaws permit the business to be conducted from the residence.
Additional restrictions can apply to residential offices, including:
- eligibility requirements for using a residence as a head office depending on the brokerage’s structure and ownership/control; and
- a limit that only two (2) licensees may be licensed in relation to a residential head office or residential branch office (subject to bylaws).
Fee impact: If a residence is licensed on the brokerage’s licence as a branch office (i.e., a “residential branch office”), it may still trigger branch office licensing and renewal fees. In other words, calling it a “home office” does not necessarily avoid branch office cost exposure—what matters is how the location is licensed and used.
3) Don’t be caught off guard: branch renewals can multiply quickly
Branch office licensing can materially increase renewal costs because the renewal fee applies per licensed location.
BCFSA example (adapted):
If a brokerage has one head office and three branch offices, and the renewal fee is $3,000 per licence, then renewal costs can total $12,000, calculated as:
Head office renewal ($3,000) + Branch A renewal ($3,000) + Branch B renewal ($3,000) + Branch C renewal ($3,000) = $12,000.
Fees to be aware of (subject to change by the regulator):
- Branch office licence application: approximately $3,100
- Licence renewal (head office and each branch office): approximately $3,000 per licence
4) Practical recommendation (cost + compliance)
To avoid paying for locations that don’t match your operations, we recommend brokerages review all locations currently registered and confirm:
- Is this a premise from which mortgage services are actually provided?
- If it is a residence, does it qualify as a residential office, and are the residential office restrictions met?
- Are any legacy locations (previously treated as “additional addresses”) still needed, or should they be removed/corrected to avoid unnecessary branch licensing and renewal fees later?