Executors and beneficiaries are suddenly responsible for:
Probate costs
Property taxes and insurance
Mortgage payments
Legal and accounting fees
Property maintenance
Buyouts between beneficiaries
Unfortunately, traditional banks move slowly—if they approve estate financing at all.
This is where probate and estate mortgage loans provide a fast, practical solution.
What Is a Probate or Estate Mortgage Loan?
A probate or estate mortgage loan is a short-term, equity-based loan secured against real property owned by an estate.
These loans are commonly used by:
Executors
Estate trustees
Beneficiaries
to access capital before probate is completed or while the estate is being settled.
Approval is based primarily on property equity, not personal income.
Common Situations Where Estate Loans Are Needed
Estate and executor mortgage loans are often used to:
Pay probate (estate administration) taxes
Cover legal and accounting fees
Maintain property during probate
Stop mortgage arrears or power of sale
Buy out other beneficiaries
Prepare a property for sale or refinance
Avoid selling the property under pressure
In many cases, timing is critical—and banks simply cannot act fast enough.
Why Banks Decline Probate & Estate Loans
Traditional lenders often refuse estate financing due to:
Property ownership still in the estate’s name
Probate not yet granted
No personal income to qualify
Multiple beneficiaries involved
Legal complexity
Private lenders, on the other hand, focus on equity, value, and exit strategy.
How Equity-Based Estate Loans Work
Property value is assessed
Existing mortgages and liens are reviewed
Loan-to-value is structured conservatively
Lawyer registers the mortgage
Funds are advanced quickly
Typical exit strategies include:
Sale of the property
Refinance once probate is complete
Distribution of estate assets
Fast, Easy & Convenient Financing for Executors
Estate mortgage loans are designed to be:
Fast – funding often in days, not months
Simple – fewer income requirements
Convenient – tailored to probate timelines
Executors gain breathing room to manage the estate properly—without rushed decisions.
Can an Executor Borrow Against an Estate Property?
Yes—with proper legal authority.
An executor or estate trustee may borrow against estate property if:
The will grants borrowing authority, or
Court approval is obtained, and
Lawyers are involved to ensure compliance
This is a common and legally accepted practice in Ontario when structured correctly.
Interest Rates & Terms (What to Expect)
Estate and probate mortgage loans are typically:
Short-term
Interest-only
Structured with clear exit timelines
Rates reflect the complexity and urgency of estate lending but are often outweighed by the benefits of speed, flexibility, and avoiding forced sales.
Important Legal & Tax Considerations
✔ Loans are secured by registered mortgages
✔ Funds are not income to the estate
✔ Professional legal advice is required
✔ Clear documentation protects executors from liability
Each estate is different, which is why experienced professionals matter.
Important Disclaimer (Please Read)
This content is provided for general informational purposes only and does not constitute legal, tax, or financial advice.
Estate, probate, and executor financing involves legal and fiduciary responsibilities. Executors and beneficiaries should always consult with:
A qualified estate lawyer
A CPA or tax professional
Their own legal advisors
Lendworth does not provide legal or tax advice and does not guarantee loan approval or outcomes.
Final Thought
Probate and estate administration shouldn’t force families into rushed or distressed property sales.
When used properly, equity-based estate mortgage loans provide executors with time, flexibility, and control—allowing estates to be settled properly and professionally.
📞 Speak With Lendworth
If you’re an executor, estate trustee, or beneficiary needing fast, equity-based financing during probate, call Lendworth today and ask how we can help.
Fast. Practical. Estate-focused.