Chattel Mortgage Australia

What exactly is a chattel mortgage? A chattel mortgage is a type of commercial vehicle finance. Under a chattel mortgage Australia, a lender loans money to a customer to purchase a vehicle. The customer then begins to make regular payments.

Ownership of the vehicle is taken by the customer at the time of purchase, but the lender takes out a mortgage over the vehicle as security for the loan.

A chattel mortgage is generally suited to someone who would use the vehicle predominantly for business purposes. This type of commercial vehicle finance is generally utilised by companies, sole traders, ABN holders, trusts and partnerships.

A benefit of a chattel mortgage Australia-wide is flexibility. You can choose to finance up to 100% of the purchase price. You can choose to have repayments structured to best fit your cashflow. You can choose to have a balloon payment made at the end of the loan term, reducing your monthly repayments and freeing up your money for other purposes.

Other benefits include:

• Fixed repayments for the life of the loan
• Interest rates are lower as the loan is secured
• Interest and depreciation can potentially be claimed as tax benefits if you are using the car to generate assessable income.

Is a chattel mortgage the right commercial vehicle product for you?

Every commercial vehicle finance product varies, as does every finance provider. At Barling Finance, we have the know-how to help you decide whether the best product for you is hire purchase, secured car loan, novated lease, operating lease or chattel mortgage. Australia is home to some great finance providers and products, and we can help you navigate through the options and ensure you get the right product for you.