Chattel Mortgage

A chattel mortgage is a type of loan designed for businesses and employees to purchase vehicles, equipment, or assets for work use. With a chattel mortgage, you can acquire the vehicles your business needs while retaining ownership from the beginning. It's an arrangement where the lender provides the funds to buy the assets, and you repay the loan over an agreed period of time.

Whether you are a business owner, sole trader, or an employee, you may qualify for a chattel mortgage if the asset financed is primarily used for work or business use. The asset you’re financing, as well as how long you have been in business, will affect what loans and lenders you’re eligible for. Our experts will work through this with you.

The majority of chattel mortgages are for vehicles, but trucks, equipment and other business assets may be eligible: Typically, if it has a serial number, we should be able to find a lender that will finance it.

Chattel mortgages are the most popular asset finance structure for business use because they allow GST-registered buyers to claim the full GST cost of the asset back on their next BAS. Interest costs and running costs are typically tax deductible for the percentage of business usage, and the asset cost can usually be deducted as a depreciation expense over time. (*Seek personalised advice from your accountant to ensure this applies to you.)

The best interest rate and lender varies depending on factors ranging from how long you have been in business, the age of the asset you’re financing, to your property ownership status. Submit a quote request to get a personalised interest rate quote.