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Chattel Mortgage

Chattel Mortgage is a type of business loan used to purchase vehicles, equipment, or machinery where the business owns the asset upfront and the lender takes a mortgage over it as security. It’s the most common structure for tradies, truckies, medical clinics and SMEs buying work assets.

Why It Matters

A Chattel Mortgage gives businesses full ownership from day one, offers potential tax benefits, and provides predictable repayments over 2–7 years. It’s widely used across the Business Owners Finance Hub and is a major structure within Vehicle Finance, Equipment Finance, and Low Doc Asset Finance.

How It Works

  • You select the vehicle, equipment, or machinery.
  • The lender funds the purchase.
  • Your business owns the asset immediately.
  • The lender registers a mortgage over it until the loan is repaid.
  • You make fixed repayments over the agreed term.

Learn how to get fast approvals: Fast-Track Asset Finance for ABN Holders.

Common Use Cases

  • Buying a new or used ute, van, or truck
  • Purchasing construction machinery or tools
  • Financing medical, café, or hospitality equipment
  • Upgrading fleet vehicles for tradies and truckers
  • Acquiring income-generating assets without draining cash reserves

Related Switchboard Resources

For taxation rules such as GST credits and depreciation, visit ato.gov.au.

Is a Chattel Mortgage tax-deductible?
Interest and depreciation may be deductible. Businesses should check the ATO website or confirm with their accountant.
Is it better than a Lease?
A Chattel Mortgage suits businesses wanting ownership upfront; leasing suits those wanting potential off-balance-sheet treatment. See Lease vs Buy.
Can it be Low Doc?
Yes. Many ABN holders can access Low Doc Chattel Mortgages with minimal paperwork.