What is a Chattel Mortgage?

Chattel mortgages are mainly used to purchase an asset for business use. They can only be utilised when the financial asset is being used completely or fundamentally for business purposes. That is, the asset will be used for business more than 50% of the time.

Very similar in conjunction with a regular mortgage, lenders offer funds to purchase the asset (known as a Chattel) and record their security interest on the Personal Property Securities Register (PPSR) for the life of the loan. When you have made all your repayments, you will be guaranteed full ownership of the asset.

Chattel mortgages are a very favoured finance option for those who are self-employed or who are small business owners. This is due to the fact that chattel mortgages offer great flexibility around repayment. Furthermore, in some instances, 100% of the loan can be financed, meaning that there are no upfront deposits needing to be put down.

Do you need a Chattel Mortgage?

When it comes to car and equipment finance, a chattel mortgage is a popular option among business owners and operators. If you are looking to invest in new equipment or upgrade your business assets, you’ve come to the right place. Speak to one of our professional finance specialists today!

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Other Types of Asset Finance

Equipment Finance Loans

While most business loans can be used for the purpose of purchasing equipment, the Equipment Finance loan is specifically designed for that purpose as a secured loan backed by the piece of equipment as the collateral asset, which allows for a lower interest rate to apply to the loan.

Novated Lease Loans

A novated lease is a type of loan that is sometimes offered to company employees as a salary packaging option as part of their employment agreement. Using a novated lease agreement also helps with managing and budgeting the vehicle running costs such as registration, servicing, petrol and insurance.