# How do HELOCs behave in an estate scenario?

> Home Equity Lines of Credit (HELOCs) are typically frozen upon the death of one of the borrowers.

Category: Legal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/legal/how-do-helocs-behave-in-an-estate-scenario

## Answer
Home Equity Lines of Credit (HELOCs) are typically frozen upon the death of one of the borrowers. They cannot be drawn upon further and often must be paid in full or converted to a fixed-term mortgage during the estate settlement. If the survivors were not on the HELOC agreement, they cannot 'assume' the line of credit as they can a standard mortgage.

## Related guide
- https://ratellow.com/guides/estate-inheritance-mortgage

## Sources
- FCAC Consumer Rights: Death of a Borrower — https://www.canada.ca/en/financial-consumer-agency/services/industry/laws-regulations/guideline-existing-mortgage-loans-exceptional-circumstances.html#toc6
- B-20 Underwriting: Title Changes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.2.2