You can keep your Australian home and mortgage when you move overseas, but tell your lender, expect it to become an investment loan if you rent the home out, and plan for tax. The biggest trap is capital gains tax: if you sell while you are a foreign resident, you generally lose the main residence exemption, including the 6-year rule.

Moving overseas with a mortgage at a glance
Area What changes
Lender Must be told; loan may be repriced as an investment
Rent Taxable in Australia; non-resident tax rates apply
Selling while overseas No main residence exemption unless the life events test is met
Withholding on a sale 15% withheld from the price without a clearance certificate
Refinancing Harder on foreign income

Do you need to tell your lender?

Yes. Most loan contracts require you to tell the lender about a change of address and of how the property is used. If you rent it out, the loan may be repriced as an investment loan. Some lenders restrict features for borrowers living overseas. Update your contact details so you do not miss notices.

What is the capital gains trap?

Foreign residents cannot claim the main residence exemption for a property sold after 30 June 2020, unless they meet the life events test, which covers a foreign residency of six years or less where specific events occur, such as a terminal illness, a death in the family or a relationship breakdown. This applies even if you lived in the home for years before leaving. If you are an Australian resident when you sign the sale contract, it does not apply, which is why many people sell before leaving or after returning.

What happens when you sell from overseas?

Since 1 January 2025, the buyer must withhold 15% of the price for the ATO unless the seller provides a clearance certificate, which foreign residents generally cannot get. The amount is credited against the seller’s tax when they lodge. Plan your cash flow for it.

Can you still use the 6-year rule?

Only if you are an Australian resident for tax when you sell. The 6-year rule lets you treat a former home as your main residence while it is rented, but foreign residents at sale cannot use it. The article on renting out your home explains the rule for residents.

What about refinancing while overseas?

Harder, because lenders assess foreign income more cautiously and fewer lenders accept it. If your rate is uncompetitive, consider refinancing before you leave, while your Australian income still counts. The expat home loans page explains how lenders treat foreign income for Australians abroad.

What should you do before you leave?

  1. Tell the lender, and review the rate and features.
  2. Decide whether to keep, rent or sell, with your tax agent.
  3. Set up landlord insurance and a property manager.
  4. Keep an Australian bank account for repayments and rent.
  5. Record the property’s value when you leave.

Questions people ask

Can I keep my mortgage if I move overseas?

Yes, but tell your lender, and expect changes if you rent the home out.

Do I pay capital gains tax if I sell my home while living overseas?

Generally yes, as a foreign resident you lose the main residence exemption unless you meet the life events test.

Will the buyer withhold money if I sell from overseas?

Yes, 15% of the price, unless you hold a clearance certificate.

Charles Touma reviews your loan before you move, while your Australian income still counts, and plans for refinancing later. A free 30-minute call covers it. General information only, not tax or credit advice; speak with a registered tax agent about residency and capital gains.

Sources: ATO, main residence exemption for foreign residents; ATO, foreign resident capital gains withholding; ATO, the 6-year rule, checked 18 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.