Priority Steps After the Death of a Co-Borrower in Quebec
In the days following the death of a co-borrower, several urgent actions protect your rights and property. Despite grief, these steps cannot wait, as they déterminé your ability to keep the residence and manage the mortgage transition in an orderly manner. Here are the steps to follow and resources available in Quebec.
The five immédiate steps to follow
- Obtain several copies of the death certificate: The death certificate issued by Quebec's Registrar of Civil Status is the essential document for all steps. You will need it for the mortgage lender, insurance companies, notary, and financial institutions. Request at least five original copies.
- Check all insurance in force: Three types of insurance may apply: the lender's mortgage life insurance (directly repays the balance to the lender), the deceased's individual life insurance (pays the capital to the designated beneficiary), and the employer's group life insurance. Submit claims immediately, as processing typically takes 4 to 8 weeks.
- Maintain mortgage payments without interruption: Continue payments to avoid any default. The lender cannot demand early repayment of the balance as long as payments are maintained. If the deceased's bank account is frozen, contact the lender to arrange withdrawal from your personal account.
- Consult a notary specializing in successions: In Quebec, estate liquidation is mandatory and must be performed by a testamentary liquidator designated in the will or appointed by the heirs. The notary verifies the will, establishes the declaration of transmission, proceeds with property transfer, and updates the mortgage.
- Assess your individual financial capacity: Can you assume the mortgage payments alone with your income and insurance proceeds? An AMF-certified broker evaluates your situation and explores options: maintaining the current loan, refinancing at better conditions, or selling if necessary.
Succession and mortgage under the Civil Code of Quebec
In Quebec, succession is governed by articles 653 to 683 of the Civil Code. The testamentary liquidator has the responsibility of taking inventory of assets and debts, paying the estate's debts (including the mortgage), and distributing assets to heirs. The surviving co-owner spouse retains their undivided share of the property. If the deceased was the sole owner, the residence is part of the estate and will be transmitted according to the will or, failing that, according to legal devolution rules. The married spouse benefits from family patrimony protection in addition to their succession rights.
Options based on your insurance situation
- With lender mortgage insurance: the balance is repaid directly. You keep the property without a mortgage. The process takes 4 to 8 weeks after submitting the claim with the death certificate.
- With individual life insurance: the capital is paid to the beneficiary. You decide whether to repay the mortgage in full, partially, or keep the loan and invest the capital otherwise.
- Without insurance: the mortgage remains your responsibility. Evaluate whether your income is sufficient for payments. An AMF broker explores refinancing or loan modification options to adapt payments to your new financial reality.
An AMF-certified broker coordinates with the notary, lender, and insurers to facilitate the transition. This professional coordination reduces administrative stress during an already emotionally difficult period and ensures all steps are completed correctly and within required timelines.