Chattel Mortgage

A Chattel Mortgage is a finance agreement between the customer and the financer.

The financer provides the funds for the vehicle, giving the customer direct ownership of the vehicle at point of sale.

The financer secures the loan with a mortgage over the vehicle. The mortgage is then registered on the Personal Property Securities Register.

At the end of the contract, once all obligations have been met and the mortgage has been removed, the customer will have full ownership of the vehicle.

A Chattel Mortgage is ideally suited to businesses and sole-traders that deal in cash. A Chattel Mortgage offers various advantages such as:

  • Fixed interest rates.
  • Fixed monthly repayments.
  • A Chattel Mortgage is tax deductable.
  • Repayments are GST-free.
  • Your vehicle's GST can be claimed as an input on a Business Activity Statement.
  • Generally low interest rates.