Chattel Mortgage

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A Chattel Mortgage is a flexible type of finance agreement used by businesses for the purpose of purchasing a new or used vehicle or other business equipment. You receive ownership of the goods upon delivery whilst the financier takes a mortgage over the asset to be purchased as their security.

Benefits of a chattel mortgage include:

  • Low establishment fees and monthly fees
  • Chattel Mortgage terms range from 1 to 5 years
  • Flexibility in loan structure which can include no capital outlay, a deposit from trade in or a residual balloon payment required at the end of contract with the ability to structure repayments either monthly or seasonal depending on cash-flow.
  • The Interest Rate and loan repayments are fixed for the term of the Chattel Mortgage agreement
  • If the asset is used for business purposes a tax deductions may be claimable and normally GST contained in purchase price is able to be claimed as an input credit through Business Activity Statements (BAS)
  • No GST is charged on the monthly Chattel Mortgage payment
  • The finance is secured against the vehicle, allowing lower interest rates

If you would like more information on chattel mortgage finance or would like to submit an application call us on 07 33499044 or contact us now.