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Chattel Mortgage

A Chattel Mortgage is a commercial finance product enabling the customer to take ownership of the vehicle from the start of the loan agreement, with the financier securing their financial interest in the vehicle by registering a charge over the asset.

How does a Chattel Mortgage work?

Using a Chattel Mortgage a customer is advanced the full purchase price of their vehicle (incl GST) form the financier, and takes ownership of the vehicle at the time of purchase. Much like a house mortgage, the financier takes a charge over the vehicle (chattel) to secure their loan. At the end of the term the customer can then take ownership of the vehicle (if all principle and interest has been repaid), continue on with the chattel mortgage for any residual amount (that would have been agreed upon at the start of the term), or trade the vehicle in for a new one and take out another chattel mortgage.

Benefits to Business

  • Fixed interest rate and monthly repayments.
  • Flexible lease terms from 1 to 5 years.
  • Repayments tailored to match your business cash flow.
  • Residual value (Balloon) may be used in the contract.
  • No capital outlay required, although deposit or trade in may be used.
  • Fully tax deductible to the extent the vehicle is used for business purposes.
  • Applicable GST on purchase price of the vehicle can be included in amount financed.


  • Customers registered for GST may claim the GST on the initial purchase of the vehicle an as Input Tax Credit in their BAS.
  • No GST is payable on the monthly repayments or any residual value at the end of the term.

For further information on a Chattel Mortgage please contact us, or you may simply apply online.