How does it Work?

A chattel mortgage is an agreement whereby you, the customer take ownership of the goods upon delivery, and the financier is able to secure a loan by registering a charge over the goods.

Who can benefit?

Anyone wishing to finance the purchase of goods for business use.

Key features:

  • You hold the title to the goods.
  • 100% finance can be provided.
  • Repayment schedules are flexible and can be structured to suite your needs.
  • Balloon payments at the end of the term can be arranged.
  • A Chattel Mortgage may provide tax benefits if the financed goods produce taxable income.
  • The term of the Chattel Mortgage is flexible (maximum term 60 months).


  • You own the goods from the beginning of the contract.
  • You can obtain the goods for a minimal capital outlay.
  • You can match repayments to cashflows.
  • You can pay lower instalments during the term of the contract with a balloon payment at the end.
  • Repayments may be either in advance or in arrears.


Whether you are on a “cash” or “accrual” method for GST, with a Chattel Mortgage you can claim the full amount of GST on your B.A.S. Statement. You can then use the GST refund to reduce your monthly instalments.

Interest rates:

Interest rate is fixed throughout the term of the loan.

Fees and charges:

  • Establishment fees are payable with no applicable GST.
  • An ASIC fee is applicable for companies (varies between states).
  • Stamp duty is payable on amount financed.
  • State government charges apply.

Repayment Schedules:

Repayments can be made:

  • Monthly
  • Quarterly
  • Semi Annually
  • Seasonal
  • Irregular


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