What Happens to the Mortgage When the Homeowner Dies in British Columbia?

This answer covers the law of British Columbia.

What happens to a mortgage after the owner dies depends mainly on the mortgage contract. Federal guidance on mortgage hardship relief is about default and severe stress, not death, and the mortgage contract terms govern what happens on death. Whether the lender can call the loan, and what any creditor insurance pays, are worth confirming from your own documents.

Who deals with the house depends on how it was owned. A deceased person's estate vests in the personal representative without further declaration or order, but property held by survivorship sits outside the estate. If the home was held as joint tenants, the survivor takes the deceased's interest. If the estate cannot cover its debts, the personal representative must apply the proceeds in the statutory order of priority.

The personal representative must not distribute the estate within 210 days, subject to exceptions. A surviving spouse may acquire the spousal home from the personal representative, and must exercise that right within 180 days after the grant is issued unless the court extends the period. A spouse living in the home pending purchase pays the mortgage payments, insurance, taxes, maintenance and utilities.