Frequently asked questions

What is a Chattel Mortgage?

A Chattel Mortgage is a commercial finance loan used by businesses and individuals for the purpose of purchasing a vehicle predominately for business use. Applicants (if not a company) must have an ABN and be registered for GST.

Chattel Mortgage is essentially a mortgage over the vehicle to be financed. i.e. the finance company advances funds to the customer to purchase a vehicle and the customer takes ownership of the vehicle at the time of purchase. The financier takes a mortgage over the vehicle as security for the loan. At the end of the contract period the security interest is removed and the customer retains full title of the car.

About Chattel Mortgages