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.
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
- Business Car Financing
- Commercial Marine Loans
- Equipment Loan Chattel Mortgage
- Truck Loan Chattel Mortgage
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
- Sole Traders
- 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