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Chattel Mortgage | Commercial Lending Australia

19 Dec Today's
best rate
Finance Equipment From
{{Advertised Rate Only}} %
*The Interest Rate is calculated on a Secured Loan for business use, effective 03/02/2023 and subject to change. WARNING: The interest rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

Compare Chattel Mortgage Interest Rates with Other Finance Products

Chattel is just one of several finance facilities available to commercial operators. This table displays the rates we are achieving across our portfolio and allows users to compare interest rates and estimated repayments when financed with different loan products. Compare this lending type with Leasing, CHP and Rent-to-Own. Enter the amount and term of your loan and the function automatically displays the repayment estimate.

Loan Amount
Loan Term
New Equipment Loan
2.79% Starts At
Monthly repayment
Used Older Secured Equipment Loan
4.50% Starts At
Monthly repayment
Business Loans - Unsecured
7.99% Starts At
Monthly repayment
Business Loans - Secured
2.95% Starts At
Monthly repayment
Overdraft - Non Bank
9.95% Starts At
Monthly repayment
Chattel Mortgage
2.79% Starts At
Monthly repayment
Operating Leases
4.60% Starts At
Monthly repayment
Commercial Hire Purchase
2.79% Starts At
Monthly repayment
Rent To Own
9.95% Starts At
Monthly repayment
Loan Product Interest Rate
Starts at:
Monthly Repayment
New Equipment Loan 2.79%
Used Older Secured Equipment Loan 4.50%
Business Loans - Unsecured 7.99%
Business Loans - Secured 2.95%
Overdraft - Non Bank 9.95%
Chattel Mortgage 2.79%
Operating Leases 4.60%
Commercial Hire Purchase 2.79%
Rent To Own 9.95%
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Disclaimer: This comparison table is provided solely for the purpose of comparing interest rates currently being achieved on different lending facilities. It is to be used as a reference only. All the fees and charges which may apply to a loan by lenders and brokers may not be accounted for in the calculations. Any loans you may be offered may attract a different interest rate and a different repayment. Use of this device is not an application, calculating a repayment estimate does not represent an offer or approval of any loan.

What Is A Chattel Mortgage?

Chattel Mortgage is an extremely popular and very commonly used business loan as it suits many businesses and the purchase of many goods and assets. Due to its popularity and relatively straightforward format, Chattel Mortgage is offered for a range of purposes by all major Australian banks and many lenders either directly or through brokers.

To simplify the process of sourcing the best loan deal for your organisation, we offer quick access to a wide range of banks, lenders.

  • All Major Banks
  • Large Number of Leading Lenders
  • Specialist Lenders for Specialist Sectors

Chattel Mortgage is flexible which in most cases, can be tailored to provide businesses with a workable, cost-effective solution.

Flexible Chattel Mortgage Finance for Many Purposes

Chattel Mortgage Loan Features

  • The lender uses the asset/goods as security against the loan and the borrower makes monthly payments to repay the loan.
  • The goods are referred to as ‘chattel’ in the loan contract and the lender effectively takes a mortgage over the goods until the borrower has finalised all payments.
  • The borrower takes ownership of the goods at time of purchase (when the loan contract is finalised).
  • Borrower is responsible for ongoing expenses, maintenance and other costs associated with the ownership of the goods over the loan term. For a vehicle or boat this would include rego, insurance, servicing etc.
  • Simple loan structure – fixed loan term, fixed interest rate, fixed monthly payments, option for a balloon.
  • The loan term will depend on the lender and the goods. From as low as 2 years up to 7 years for equipment and trucks.
  • Balloon payment is optional. This is a percentage of the purchase price which is deferred for payment at the end of the loan term, when all monthly repayments have been finalised. The balloon can be paid as a lump sum or in some cases, refinanced.
  • Suited to cash accounting method
  • GST on the purchase price can be claimed on the next BAS
  • GST is not charged/claimable on the interest or the principle component of the monthly repayments or the balloon as it has already been claimed at time of purchase.
  • GST is charged on any fees and charges in monthly repayments. This will be noted in the loan contract.
  • Only the interest component of the monthly repayment is tax deductible.
  • Depreciation is claimable in accordance with the ATO guidelines for the relevant asset category.

Suits Many Businesses in All Industries

Chattel Mortgage is suited to many types of business structures, but it is advisable to consult with your accountant as to whether or not this is the best option for you.

  • Small Businesses
  • SMEs
  • Sole Traders
  • Partnerships
  • Owner-Operators
  • Family and Unit Trusts

Whatever industry sector you operate in, Chattel Mortgage may present a cost-effective commercial loan type.

Sourcing a Chattel Mortgage

Due to the popularity and flexibility of Chattel Mortgage, it is a highly competitive loan category. All major banks offer Chattel Mortgage for a range of commercial purchases plus there are even more non-bank lenders offering, in some cases, even more competitive deals.

Selecting the lender that best suits you and your purchase may require some research. If you operate in a specialist sector, a lender that specialises in your industry, may offer you the best deal.

Using the services of a broker may offer significant benefits over sourcing a equipment loan yourself. We have access to a large number of lenders and the expertise to negotiate the best rates and the best deals.

We have a wide range of choices and give you direct access to lenders.

Connect with us for lenders that may assist you today

Chattel MortgageCalculator

This kind of loan is the most commonly used form of lending for the acquisition of many types of equipment and assets as it suits many commercial set-ups. For a rough estimate on possible repayments, simply enter the loan amount, term, and any balloon you want and the calculator displays the results. For a confirmed quote, contact us for a quick quote.

Disclaimer: This device is not an application for lending. Use of the calculator does not in any way indicate a quote for a loan. The results calculated do not indicate approval for financing. Fees and charges applicable by individual lenders are not included in total in the calculations. Any financing offers you are made may vary from the repayment calculated. This is to be used as a guide only.

Finance Calculator Disclaimer

Chattel Mortgage FAQ's

This is a very popular form of lending due to its suitability for many commercial structures and its flexibility to suit many asset purchases. To expand on the detail provided on our web page, we have included these direct answers to specific questions. To answer any more of your questions, please reach out to our team.

What does the Chattel Mortgage actually mean?   

Chattel is a term for goods, specifically physical goods such as assets. It is a term that is used in financial documentation including lending and loan contracts and across the legal sector in a range of documents. In relation to commercial financing, lending refers to the specific item, equipment or goods being financed. This may be cars, machinery, vehicles or other commercial equipment. The term mortgage refers to the actual loan. That is the lending being provided. While the term mortgage is more commonly seen in regard to Home Loans, it is a general term for a loan.

Is Chattel Mortgage the same as an Equipment Loan?   

Some lenders have simplified their lending product terminology and do refer to a Chattel Mortgage as an Equipment Loan, Vehicle Loan, Truck Loan or Heavy Equipment Loan. This can be seen used by several major banks including CBA, Westpac and others. In most instances where you see the term Equipment Loan in a lender’s loan information, it will also the loan in brackets to clarify the loan type. The more general Commercial Loan is not usually associated with this kind of loan. A general Commercial Loan typically refers to a different type of loan, possibly for intangible purchases

Is Chattel Mortgage a secured loan?   

Essentially yes, it is a secured loan. The asset being financed, which can include cars, trucks, plant, machinery and many types of equipment used by an operation, is used as security against the loan. The borrower takes full ownership of the goods from the time of settlement and is responsible for the operating and ongoing expenses associated with the asset. But the lender retains a security over the asset until all repayments and any balloon is paid in full. When all payments are made, the lender releases the security over the goods. Where the goods are not accepted as security against the loan, a commercial entity may seek an Unsecured Loan for the purchase.

Are Low Docs and No Docs Loans available with Chattel Mortgage?   

Low Docs and No Docs loans are a category of commercial financing application rather than loan types. These applicants do not have all the financial records and documentation as is usually requested by lenders for a loan. This places the commercial entity in the category of a Low Docs or No Docs loan. The amount of docs provided determines whether it is a low or no docs. This application category can also apply to organisations that do not meet the minimum trading requirements of some lenders. Low Docs/No Docs loans can be for any of the financing facilities offered, and subject to lender guidelines. So yes, Low Docs and No Docs Chattel Mortgage is available.

How is Chattel Mortgage different from Leasing?   

Both Chattel Mortgage and Leasing are very popular forms of lending but distinctly different in structure. Differences include: Chattel is suited to cash accounting method and Leasing to the accruals method of accounting; with Chattel the borrower takes ownership and the asset is entered on their balance sheet while with leasing the ownership is held by the lender over the loan term and not entered on the borrower balance sheet; leasing payments are fully tax deductible while only the interest portion of Chattel repayments are deductible; the income tax benefit is realised when the asset is depreciated; GST is also applied and claimed at different times during the loan term; and the interest rates differ. In deciding which is the better loan option for your purposes, refer to your accountant.
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