A chattel mortgage is a fancy term for a business or commercial vehicle or equipment loan. A chattel mortgage is similar to a home loan - with the equipment or vehicle (the chattel) used as the security for the loan.
Unlike equipment finance or a higher purchase arrangement, you own the asset from the start. The asset can then be put to work in your business to make the repayments on the loan! When the chattel mortgage is paid in full, the security over the asset will be discharged by the lender.
If you are self-employed or an individual who uses your car primarily (51% or more) for business purposes you may be eligible for a chattel mortgage. For example, if you're a tradesman using your ute to move equipment from site to site, you may be eligible for a chattel mortgage.
Talk to one our FBT NSW car finance specialists today to find out more.
