Chattel Mortgage
Are you looking for a chattel mortgae? You can apply online and get an answer within 10 minutes.
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What is a chattel mortgage?
One of the most common uses of a chattel mortgage is for a car or a vehicle loan. A chattel mortgage can also be used for business equipment.
A Chattel Mortgage is essentially a charge over goods to be financed. If your business operates under a cash accounting basis then a chattel mortgage would benefit you, as you will be able to claim full GST tax credits. We have help hundreds of businesses organise chattel mortgages and set up tailored loan contracts.
Unlike a Hire Purchase you will take ownership of the car immediately.
For a friendly no obligation free Chattel Mortgage quote contact us.
Chattel Mortgage Interest Rates
Our rates start from a low 8.50%*
What are the benefits of a chattel mortgage?
- Fixed interest rate
- Cash accounting
- Flexible car finance to suit your cashflow
- Optional depost upfront to reduce interest
- Optional balloon payment
- Fully tax deductable
A significant advantage of a chattel mortgage is that the interest rate is fixed for the term of the loan. Your repayments are set and you can finish the loan early. You can make extra payments and deposit to reduce the interest you pay.
Tax Saving?
The interest and depreciation is fully tax deductible which means you can claim the GST back.
Is a Chattel Mortgage right fro me?
There is a simple answer to this question. If you are planning to use the car for more than 50% business use then a chattel mortgage will be great for you because you get flexible car finance which is suited to you business.
Do I pay interest?
One of the advantages of a chattel mortgage is that the interest rate is fixed for the entire loan period. This means you can make a plan to pay back a set amount without having to take into account a variable interest rate.
A chattel Mortgage with a small or no balloon payment
It is completely up to you whether you would like a large, small or no balloon payment at the end of your chattel mortgage. This is one of the options that give this loan product so much flexibility. If you opt for a large balloon then your monthly repayments will be dramatically reduced where as if you have a small or no balloon then you will have higher repayments.
Can a chattel mortgage be used for something other than a new car?
Of cause a chattel mortgage can be used for almost anything including boats, trucks, office equipment as long as it is going to be used for more than 50% of the time for business use.
What happens if I miss a repayment?
The most important thing to do is to contact us as soon as possible the longer you leave it the less chance we have of helping you.
How do I apply?
You can apply for a friendly no obligation free online Chattel Mortgage quote contact us.
Alternatively you can call us on 1300 628 562.
Six Steps get you the best deal
Step 1 – Informing yourself
Read up on what a chattel mortgage is. At the end of the day you are taking out the chattel mortgage so it only makes sense that you learn about this loan product and therefore will be in the best position to make an informed decision. Chattel mortgages have been around for a long time so they are well documented.
Step 2 – Car finance car purchase separate
We recommend that you keep the purchase of the car and the car finance separate that way you don’t you need to try to unpack the deal the deal is offering. Be carful of a dealer offering you a fanatic price on a car but including finance, cause you can be reinsured that they will make it up.
Step 3 – Get Pre-approval
Pre-approval will give you cash in hand bargaining power and therefore you will be able to negotiate a better deal because you can buy the car right now!
Step 4 – Understanding your commitment
You don’t own the car until the final payment is made. The finance company will own the car until you make that final payment and they have rights to the car. You need to know where you stand and what your obligations are.
Step 5 – Remember the flexibility of a chattel mortgage
You have a lot of flexibility with your repayments. You can make a plan around your cash flow. This is a huge advantage, as the payment schedule can be made flexible to meet your needs.
Step 6– Balloon and deposit
Another option with a chattel mortgage is the flexibility of a balloon payment. You may want to consider incorporating a balloon payment into your loan. The balloon will mean that the repayments will be lower and you will pay less interest but you will have a larger final payment. A deposit will mean that the interest you pay will be significantly less and save you money in the long run.
Some common chattel mortgage traps
Make sure the value of the car is higher or at least equal to the balloon payment. This will mean that if you need to sell the car then you will have the money to cover the balloon. You are entering a legal contract. Make sure everything adds up and seek legal advice if you need.
Other business products which might interest you are:
*Terms, fees and charges apply. To approved applicants only.
Chattel Mortgage
- Chattel Mortgage
- What is it?
- Chattel Mortgage Rates
- Chattel Benefits
- TAX
- Right for Me?
- Interest Rate
- Balloon Payment
- Miss a repayment
- Apply
- Get the Best Deal
Finance Steps
- Get Pre-approval
- Find the Car you want
- Negociate the best price
- Drive your new car
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