Estate & Probate
Private Mortgages on Estate and Probate Property in Ontario
The house is worth a great deal and the estate has bills that can't wait for a buyer: beneficiaries, the CRA, the lawyer, a mortgage in arrears. We lend against the property now and get repaid when it sells.
Stonefield Capital provides private mortgages on estate and probate property in Ontario, borrowed by the estate trustee on behalf of the estate once the Certificate of Appointment of Estate Trustee is granted. Funds are advanced to the estate to pay beneficiaries, clear CRA balances ahead of a clearance certificate, cover legal and carrying costs, stop arrears from becoming a power of sale, or bridge to a firm sale; the trustee distributes them under estate counsel. Approval is based on the equity in the property and the exit, usually the sale, not on the trustee's personal income or credit. Terms run 1 to 12 months, interest-only, discharged from sale proceeds. Borrowers are matched with a Stonefield-approved mortgage broker.
Why a Bank Won't Touch a Property Held in an Estate
A bank lends to a living borrower with income and a credit file, on a title it considers settled. An estate has none of that in the usual form: the registered owner has died, the person signing is a trustee acting for the estate, and the money is needed precisely because the sale hasn't happened yet. Beneficiaries want their share, the CRA has to be paid before a clearance certificate is issued, legal and accounting fees keep coming, and if the old mortgage or the taxes fall into arrears the estate can lose the property to a power of sale before it ever gets to market.
A private mortgage fits the situation as it is. Once the Certificate of Appointment of Estate Trustee, the probate certificate, is granted, the trustee can borrow on behalf of the estate. Stonefield lends on the equity in the property and the exit, almost always the sale, not on the trustee's personal income or credit. Funds go to the estate, and the trustee distributes them under the will and estate counsel's guidance. When the property sells, the mortgage is discharged from the proceeds. A Notice of Assessment or CRA account summary is requested to confirm what the CRA is owed, and the estate's lawyer is part of the file from the start, because legal preparation, not underwriting, is what sets the timeline. You're matched with a Stonefield-approved broker who has placed estate files before.
The Play: Borrow Against the Property, Settle the Estate's Obligations, Discharge From the Sale
Most estate stress is timing: the obligations are due now and the money is locked in a house that will sell in three to nine months. A short interest-only mortgage on the estate property unlocks that equity the week probate is granted. Pay the beneficiaries who need their share, clear the CRA so the clearance certificate can issue, keep the old mortgage and the taxes current, and if it pays to renovate before listing, fund that too. Then sell on your own timeline instead of the creditors'; the mortgage is paid out of the proceeds at closing. Brief your estate lawyer before the file is submitted, because the discharge and the transfer are coordinated through counsel and that is what decides how fast it moves.
The Estate Files We See
Trustees, beneficiaries and attorneys under a power of attorney, on residential and residential-anchored mixed-use property anywhere in Ontario.
Beneficiaries Need Their Share Now
Heirs who can't wait a listing season for a buyer. The estate borrows, pays them out, and the sale repays the loan.
CRA Balance Before the Clearance Certificate
Taxes owing have to be settled before the estate can close. Equity in the property covers them now.
Arrears Threatening a Power of Sale
The old mortgage or the property taxes have fallen behind and the lender is moving. Refinancing stops the clock.
Fix It Up Before Listing
A house that will sell for far more with a clean-out, repairs and paint, and an estate with no cash to pay for them.
Buying Out a Co-Heir
One beneficiary keeps the house and pays the others their share, before a bank will lend on it.
Acting Under Power of Attorney
An owner who can no longer manage their affairs, an attorney with the authority to act, and expenses the property has to cover.
The question is never the trustee's income. It is what the property is worth, what is owed against it, and when it sells.
What Estate Trustees Should Know
Equity and the Sale, Not Your Credit
The loan is underwritten on the equity in the estate property and on the exit, usually the sale. The trustee borrows for the estate, not personally, so the trustee's own income and credit are not the gate. Terms run 1 to 12 months, interest-only, discharged from the sale proceeds.
What to Send
The Certificate of Appointment of Estate Trustee, a title search, the property address, the exit plan (a listing agreement, an accepted offer, or the sale timeline), and a Notice of Assessment or CRA account summary showing what the CRA is owed. Most files close on our own comparable-sales review; if an appraisal is needed you're told up front.
Your Lawyer Is Part of the File
Estate conveyancing has its own steps, and they set the timeline. Stonefield works alongside your estate lawyer and matches you with a broker who has placed estate files before, usually within one business day.
Frequently Asked Questions
Can an estate borrow against a property before it sells?
Do we need probate first?
Can the money go straight to a beneficiary?
Do I need an appraisal?
How is the mortgage repaid?
How do I start?
Common Questions
A deeper answer to the question estate trustees ask most.
Can I Get a Private Mortgage on an Estate or Probate Property in Ontario?Estate Bills Due, House Not Sold Yet?
Get matched with a Stonefield-approved broker who lends against the estate property and works with your lawyer to the sale. Free, no obligation, most trustees hear back within one business day.