Can a Creditor Take a Deceased Person's House to Pay Their Debts in Ontario?

Yes, in many cases the house can be used to pay debts. Real property is administered like personal property and is liable in the same way for the deceased's debts, costs and expenses. The estate trustee can sell it without the beneficiaries agreeing, except where the sale is only for distribution.

If the estate lacks the assets to pay everything, debts are paid proportionately with no preference between ranks of debt, though a lien that existed in the debtor's lifetime is not affected. A secured creditor such as a mortgagee ranks only for the unsecured part of its claim and keeps its security against the property. Unless the deceased showed a contrary intention, a beneficiary of mortgaged property takes it primarily liable for the mortgage debt.

A good-faith purchaser takes estate real property free of creditors' claims except those the purchaser knew about. An estate trustee who gave the required notice to creditors is not liable to a creditor they had no notice of, but the creditor may follow the proceeds. For a condo, the estate remains responsible for common expenses, and the corporation has a lien for unpaid amounts. A lawyer can confirm how claims rank in your case.