Chattel Mortgage
Business Car Finance

A chattel mortgage lets you take immediate ownership of your car while the lender holds a mortgage over the asset until the loan is paid.  Simply put, the chattel is the car, and the mortgage is the loan.  The advantage is the interest rate is usually lower than unsecured loans and is fixed for the term of the loan.  However, just like a home mortgage, the lender can repossess the vehicle (the security) if the loan is not paid in full.

A chattel mortgage can be tailored to suit business cash flow requirements over a range of terms generally from 2 to 5 years, although up to 7 years.  Interest rates are fixed for the life of the loan and usually lower than unsecured loans.  A chattel mortgage is a business loan that allows eligible businesses to claim GST on the purchase of the vehicle, along with depreciation and interest, subject to seeking advice from your accountant.  Flexible repayment options also allow you to structure a chattel mortgage with a balloon payment at the end of the term to keep repayments lower for cash flow purposes.

Chattel Mortgages are an excellent fit for all businesses, professionals, trades & services, and individual employees with workplace vehicle usage requirements.  To be eligible the vehicle must be used wholly or mostly for business purposes.  Your business must be a tax resident, based, registered, and operating in Australia.

Yes, we have multiple Low Doc chattel mortgage options available through our lenders.

We use the term Chattel Express, while our lenders refer to Low Doc lending as Commercial Express or Fast Track for eligible businesses.  The Low Doc criteria differ between lenders but typically allows eligible ABN and GST registered business owners to finance approved motor vehicles and other assets without providing ‘Full Doc’ financials.

You’ll generally meet our lender’s criteria to apply for a Low Doc chattel mortgage if your registered for GST and an ABN for 12 months and have a home loan or property ownership.  The age of the vehicle should be no older than 12 years at the end of the term, although some lenders will allow 15 years.

Conditional approval also referred to as ‘approval-in-principle’ is a system-generated outcome for some lenders while others issue commercial lending policies for us to meet.  Either way, we’re able to confirm your conditional approval over the phone, before doing any credit checks, so you can apply with confidence for a Low Doc Chattel Mortgage.

However, conditional approval does not guarantee full approval until credit checks have been completed and the lender confirms the simplified Low Doc lending application, we submit on your behalf meets their criteria.

A Chattel Mortgage brings you all the advantages of being in business, with lower rates, lower repayments, and less paperwork.  Just tell us about your business, the car you’re going to purchase and the amount you’d like to borrow, over the phone.  We’ll confirm your lowest rate and monthly repayment options, and eligibility to apply for a simplified Low Doc Chattel Mortgage, should you decide to proceed.

There’s no online application form or paperwork for you to complete.  We’ll simply obtain your personal information, and details about the car over the phone.  We’ll also need you to sign our privacy consent and provide a copy of your driver’s license or other proof of identification.

We’ll then express your Low Doc Chattel Mortgage for full approval same day or next.  It’s that simple because we do it all with you over the phone.

‘Today’s Best Rate’ on our website is the best-published interest rate for a Chattel Mortgage (before fees & charges) issued by our lenders on any given business day.  As a guide, some lenders require your GST and ABN to be registered for minimum of 24 months and to have a home loan or property ownership.  Others will accept 12 months GST and ABN registration but require a minimum deposit on the car in addition to being a home loan or property owner.  There are also different requirements on the age of the vehicle at the time of purchase and all lenders require satisfactory credit checks to obtain full approval.