A chattel mortgage is the most popular way Australian businesses finance a vehicle. Here’s the complete guide.
How it works
You own the vehicle from day one, and the lender registers a mortgage over it as security until the loan is repaid. Because the vehicle secures the loan, rates are sharp and approvals are fast, with terms from one to seven years.
The tax appeal
For GST-registered businesses, you can generally claim the GST on the purchase in your next BAS, and claim depreciation and interest as deductions — confirm with your accountant. A balloon can lower repayments, or be paid out to own the vehicle outright.
Chattel mortgage vs lease depends on your tax position and whether you want ownership. Get an obligation-free quote and we’ll compare structures across 80+ lenders.
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