Chattel Mortgage

A chattel mortgage is a secured loan designed specifically for business. It works much like a standard car loan

What is Chattel Mortgage and how does it work?

A chattel mortgage is a secured loan designed specifically for business. It works much like a standard car loan. You take ownership of the asset upfront and use it as collateral for the loan. Once you’ve made the final repayment, you’ll own the asset outright.

Chattel mortgages are most commonly used to finance the purchase of vehicles, but they may also be used to finance the purchase of boats, tractors, trucks, motorbikes, and a variety of other movable assets. The lender will provide the funds for you to purchase the vehicle, and you will take ownership at the moment of purchase, similar to a secured car loan. In addition, the lender will take out a mortgage on the vehicle as collateral for the loan. And when the contract is completed, you will be the sole owner of the vehicle.

Features of a Chattel Mortgage

The flexibility of a chattel mortgage is one of its most appealing features. You can adjust almost any of the terms and conditions to suit your business depending on the lender you choose. A customer who is registered for GST may claim the GST contained in the vehicle price as an input credit on their next Business Activity Statement (BAS). Other features of a Chattel Mortgage include:

Potential tax deductions
Immediate asset ownership
Improved cash flow
Fixed interest rate
New or used vehicles/equipment
Flexible loan terms, from 1-7 years
Structured repayments to suit your cash flow
Cash deposit/trade-in or 100% finance
Residual value or “balloon” payment options

Feel free to talk to our dedicated team of financial professionals via our hotline 1800 010 001 to get information on interest rates, application fees, charges, early termination fees etc.

Chattel Mortgage Calculator

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The figures shown in the calculators do not constitute financial advice. Lender policy, term and conditions, fees and charges apply. The results should not be taken as a substitute for professional or finance advice. All reasonable care has been taken in preparing and designing the calculators and tools; however, oxcel finance provides no warranties and makes no representation that the information provided by the calculators and tools is appropriate for your particular circumstances or indicates you should follow a particular course of action

Anytime, Anywhere, Anyhow

We’re a real online business. Get an online quote, electronically sign documents and receive / send funds electronically; there’s no need to leave that couch!

Financial Flexibility

Our lenders have a wide range of options that give you flexibility including early termination fees, variable loan terms and the ability to add a residual

Lifetime Support

Don’t get left alone to figure out how much you owe, changing your details, or assessing your changeover options; we’re here for you over the life of your loan

Anytime, Anywhere, Anyhow

We’re a real online business. Get an online quote, electronically sign documents and receive / send funds electronically; there’s no need to leave that couch!

Financial Flexibility

Our lenders have a wide range of options that give you flexibility including early termination fees, variable loan terms and the ability to add a residual.

Lifetime Support

Don’t get left alone to figure out how much you owe, changing your details, or assessing your changeover options; we’re here for you over the life of your loan.