Chattel Mortgage

A chattel mortgage is a popular choice for many businesses and Project 1 Finance are here to remove all the guesswork and confusion. We will walk you step by step through the features of a chattel mortgage. Our consultants, who deal with these kinds of products daily, will immediately put your mind at ease with their expertise and personalised service.

What is a chattel mortgage?

A chattel mortgage is a business or vehicle loan which is designed for businesses. To apply you must be a registered Australian business (an ABN holder) intending to use the car for over 50% business use.

The chattel is the asset which the business is financing and the mortgage is the loan product you will be paying back. The loan is flexible to the business’ needs and the terms can range anywhere from one to seven years and even beyond that if required.

The business which takes out the chattel mortgage is the one which takes ownership of the vehicle. You then pay off the loan in instalments until the mortgage is paid out.

There are considerable potential tax benefits. GST, depreciation and interest back on your BAS are all claimable. Input tax credits may also be claimable for the GST which is included in the car’s price, and you may also be able to claim the depreciation and interest of the repayments.

Payment options are flexible – for example, pay monthly over five years with a balloon payment at the end of your loan and this will lower your monthly payment terms. Or choose not to have a balloon payment – the choice is yours.

If you are not a business but an employee wanting to finance a vehicle under a car allowance, there is also the option of a novated lease. This also has significant tax benefits. Visit our dedicated novated lease page to find out more.

Want access to the most competitive rates on chattel mortgages in the market, only from Australia’s most trusted and reputable lenders? You’ll get all that and more when you get in touch with us here at Project 1 Finance Pty Ltd. We offer obligation-free advice and fast, efficient turnaround times, meaning you could have that deal – and the vehicle you want – in next to no time! For further information on chattel mortgages, why not ask for a quote online or give us a call?