Understanding Chattel Mortgage
A chattel mortgage is one of the most popular finance structures for business equipment and vehicle purchases in Australia. It allows you to own the asset immediately while the lender takes a mortgage over it as security.
How Chattel Mortgage Works
You take ownership of the asset at purchase. The lender registers a mortgage (lien) over the asset. You make regular repayments over the loan term. Once all repayments are made, the mortgage is removed and you own the asset outright.
Benefits of Chattel Mortgage
- Immediate ownership of the asset
- Potential to claim full GST in the first BAS
- Interest and depreciation may be tax-deductible
- Balloon payment option to reduce regular repayments
- Fixed repayments for budget certainty
Who Chattel Mortgage Suits
- GST-registered businesses purchasing equipment or vehicles
- Businesses wanting to own the asset from day one
- Businesses seeking tax benefits from depreciation and interest deductions
Get Started
Contact The Asset Financing to discuss whether a chattel mortgage is right for your purchase.
Contact The Asset Financing at theassetfinancing.com.au/contact