Can I borrow against a house I inherited?

Generally yes, once it's legally transferred into your name. The bank will still check your income and expenses to make sure you can afford the repayments.

Can I get a loan on an inherited house before probate?

Generally no. Until probate or letters of administration are granted and the title is transferred to you, the executor controls the property, and lenders won't usually take it as security.

What happens if my parents still had a mortgage on the house?

It needs to be dealt with as part of the estate, either paid out or refinanced into your name. A broker can look at whether you qualify to take it on.

Can I borrow to buy out my siblings' share of an inherited house?

Often, yes. You'd borrow against the property to pay them their share, provided your income supports the repayments on the new loan.

Do I pay tax if I sell an inherited house?

It depends on how the property was used and what you do with it. Speak to an accountant before you sell or rent it out.

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Straight Answers · Refinancing

My parents died and left me the house. Can I keep it or borrow against it?

Bayley Clarke · Mortgage broker on the road · Last checked 11 November 2026 · 2 min read

The short answer

I'm sorry that's happened. Once the house has been legally transferred into your name, it's yours to do with as you wish. You can keep it, you can sell it, and as long as we can show income, you can borrow against it to fund whatever you need.

The bank still wants to see you can afford the repayments on anything you borrow, the same as any other loan. But the property is yours, and the decision about what to do with it is yours too.

The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.

First, the transfer

The words that matter are once it's been legally transferred into your name. Until the estate is sorted, which generally means probate or letters of administration and then the transfer to you as the beneficiary, the house is controlled by the executor, not by you. A bank won't generally lend against it until the title is in your name.

That process takes time, and it's handled by the estate's solicitor. There's no rush to make any big decisions while it's happening. If there's still a mortgage on the house from your parents, that needs to be dealt with as part of the estate as well, either paid out or taken over, and that's something we can look at together.

Keep, sell or borrow

Once it's yours, the options are wide open. Some people move in. Some keep it and rent it out. Some sell. And some keep it and borrow against it, maybe to pay out other debts, to help buy another property, or to buy out a brother or sister if the house was left to more than one of you.

If you borrow against it, the house is the security, and the bank looks at your income and expenses to make sure you can afford the repayments. If there's no loan on it now, that can mean a lot of equity to work with. How much you can actually use comes down to the valuation and what your income supports.

The honest bit: take your time, and get tax advice

Grief and big money decisions don't mix well. Unless there's a reason you have to act quickly, it's generally fine to let the estate settle and give yourself time before deciding.

And before you sell or rent it out, talk to an accountant about the tax side, because how you use an inherited property can change what you owe. When you're ready to look at the lending, I'm here.

When you're ready to look at your options

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Next question

What does cash out mean, and what will the banks accept as a reason for my cash out?

Cash out means borrowing against your home's equity. Keep the loan at or under 80% of the value, show you can afford it.