Why probate can slow things down
Until probate is granted, the estate trustee's authority to sell or refinance the property may be limited or require additional documentation for lenders and buyers, which can add weeks or months to what would otherwise be a straightforward transaction.
Continuing mortgage payments during probate
Mortgage payments generally still need to be made during the probate period to avoid default, typically from estate funds or contributions from beneficiaries who plan to keep the property.
Selling a property during or after probate
Some transactions can proceed before probate is fully granted if a lawyer confirms the estate trustee has sufficient authority, though most lenders and buyers prefer probate to be completed or well underway before finalizing a sale or mortgage transaction.
- Estate trustee authority confirmed by a lawyer
- Lenders may require proof of probate
- Buyers often prefer certainty before closing
Refinancing an estate property
If a beneficiary wants to refinance to keep the home rather than sell it, most lenders will require the property to be transferred into the beneficiary's name first, which typically depends on probate being completed.
Frequently asked questions
- How long does probate typically take in Ontario?
- It varies by estate complexity, but a straightforward estate can take a few months, while more complex ones can take considerably longer.
- Can a mortgage be refinanced before probate is complete?
- It is uncommon, since most lenders want confirmation of legal ownership and authority before proceeding, though a lawyer can advise on specific circumstances.
- Who pays the mortgage while probate is in progress?
- Typically the estate covers payments using available funds, or beneficiaries may contribute if the estate has limited liquid assets.