What Happens to a Mortgage or Car Loan After Someone Dies in British Columbia?

This answer covers the law of British Columbia.

A mortgage or car loan does not simply disappear when the owner dies, and a beneficiary who receives the property generally receives it along with the debt. Where property is subject to a purchase money security interest, such as a mortgage or loan secured on the property that financed it, the beneficiary's interest is primarily liable to pay the secured debt as between people claiming through the will-maker.

That rule gives way to a contrary intention in the will, and a general direction to pay debts does not by itself show one. So the exact wording of the will matters. Whether payments can carry on as they are, whether the lender will let you take over the loan, and what happens if payments stop all turn on the lender and the loan terms, which vary, so read the loan documents and contact the lender early.

The personal representative has the authority to administer and distribute the estate and must account to beneficiaries and creditors. Dealing with the lender depends on the loan terms and your situation. A lawyer can confirm how the will, the loan and the lender's rights fit together before you decide to keep or sell.