What Happens to a Mortgage When Someone Dies in BC?

Short answer: the mortgage stays attached to the property. It doesn't vanish, and it doesn't immediately come due — but someone has to keep paying it.

Who pays: until the estate is settled, mortgage payments are an estate expense paid from estate funds. The executor should keep payments current to protect the property from default while probate runs.

Can the lender demand full payout? In practice, Canadian lenders work with estates: they'll typically allow the mortgage to be paid from the estate, assumed by a surviving joint owner or qualifying beneficiary, or discharged when the property sells. Contact the lender early; ask for their estates/bereavement team.

If there was mortgage life insurance, the balance may be paid off entirely — check the mortgage documents and ask the lender.

What to actually do (executor):

1. Notify the lender with the death certificate; ask for the estates team and current payout/payment details.
2. Keep payments current from estate funds (keep records — these are reimbursable estate expenses).
3. Confirm or update home insurance — vacant-home clauses are a bigger practical risk than the mortgage.
4. Decide the path: assume (joint owner/beneficiary), sell and discharge, or refinance into a beneficiary's name.

Selling during probate? See Selling a House During Probate. Find help: vetted BC professionals →

Foxglove is a guide, not a law firm. General information, not legal advice; forms and rules change — confirm current requirements with the Supreme Court of BC, the official BC government forms page, or a qualified BC professional. Find vetted BC help →