Chattel Mortgage
Own Your Assets From Day One.
1800 678 880Mon–Fri 8am–6pm AESTA chattel mortgage lets your business take ownership of the asset immediately while spreading repayments over time. Competitive rates, tax benefits, and fast approvals.
- Compare 30+ lenders without touching your credit file
- Soft enquiry only — no credit checks until the right option is on the table
- Decisions in as little as 24 hours
$10K–$2M
Loan amounts from
24–48 hrs
Approval timeframe
1–7 Years
Loan terms available
Upfront
GST claimed
What is a Chattel Mortgage and How Does it Work?
A chattel mortgage is a business asset finance product where the lender advances funds to purchase an asset and takes a ‘mortgage’ over it as security. The business takes immediate ownership of the asset and can claim depreciation and GST input tax credits. Compare it with a finance lease or a commercial hire purchase to find the right structure for your business. For heavy plant, also consider our equipment finance options.
What is a Chattel Mortgage?
Your business takes ownership of the asset immediately at settlement, while the lender holds a mortgage over it as security until the loan is repaid.
Advantages
- Immediate ownership from day one
- GST on the purchase price claimed upfront
- Fixed interest rate and fixed repayments
- Tax deductions on interest and depreciation
Who is it Best Suited For?
Ideal for GST-registered businesses using the asset predominantly for business purposes, including sole traders, partnerships, companies, and trusts.
Advantages
- GST-registered businesses
- Vehicles and heavy equipment purchases
- New and used assets
- Sole traders, companies, and trusts
Key Benefits
Chattel mortgage offers strong financial benefits. Claim the full GST component upfront on your next BAS and deduct interest and depreciation each year.
Advantages
- 100% finance available, no deposit required
- Optional balloon payment to reduce monthly costs
- Flexible loan terms from 1 to 7 years
- Tax-effective structure for GST-registered businesses
Things to Consider
The asset sits on your balance sheet as it is owned by the business, and early payout fees may apply if you repay ahead of schedule.
Advantages
- Asset appears on your business balance sheet
- Depreciation claimable over effective asset life
- Early payout fees may apply, check your contract
- Asset must be used primarily for business purposes
How It Works
From enquiry to asset ownership in as little as 24–48 hours.
Apply Online
Complete our short 2-minute application form with your business details, the asset you want to purchase, and your preferred loan amount.
Asset Assessed
Our team reviews the asset details and your business profile, then matches you with the most suitable lenders from our panel of 30+.
Finance Structured
We present tailored chattel mortgage options including rate, term, balloon payment (if applicable), and monthly repayment amount for you to compare.
Take Ownership
Once you accept an offer and documents are signed, the lender pays the supplier and your business takes immediate legal ownership of the asset.
Common Questions
What is the difference between a chattel mortgage and a car loan?
A chattel mortgage is a business finance product designed specifically for businesses registered for GST. Unlike a personal car loan, a chattel mortgage allows your business to claim the GST on the purchase price upfront on your BAS, and claim interest and depreciation as tax deductions. Personal car loans do not offer these tax benefits.
Can I claim the GST on the purchase price?
Yes. If your business is registered for GST and the asset is used primarily for business purposes, you can claim the full GST component of the purchase price on your next Business Activity Statement. This is one of the key tax advantages of a chattel mortgage over other finance structures like a finance lease.
Are the interest repayments tax deductible?
Yes. The interest component of each repayment is generally tax deductible as a business expense, and you can also claim depreciation on the asset over its effective life as determined by the ATO. We recommend speaking with your accountant to confirm how these deductions apply to your specific situation.
What is a balloon payment and should I include one?
A balloon payment is a lump sum amount payable at the end of the loan term. Including a balloon reduces your regular monthly repayments during the term. At the end, you can pay the balloon in full, refinance it, or trade in the asset. It is a useful option to manage cash flow, but you need to plan for the balloon amount at the end of the term.
Do I need a deposit for a chattel mortgage?
Not always. Many lenders offer 100% finance for chattel mortgages, meaning no upfront deposit is required. A deposit or trade-in may be used to reduce the loan amount and lower monthly repayments, but it is not mandatory for most applications involving new or near-new assets in good condition.