Chattel Mortgage

A Chattel Mortgage is a type of finance used to finance goods that are for business purposes.

A Chattel Mortgage means that the goods being purchased are the security for the loan or a Mortgage over goods to be financed.

 A Chattel Mortgage will enable you to claim GST on the full purchase price of the goods if purchased from a GST registered person or company.

You can also claim depreciation, running costs and any interest costs, against your business income.

We advise that you contact your accountant or tax agent for current advice.

A Chattel mortgage offers a range of options, you have the ability to either finance the full purchase price or alternatively you can include a deposit or trade in to reduce your payments.

 A Residual or a balloon payment may also be used at the end of the term.

Or you may choose to pay the loan in full over the agreed term. This is called a fully amortised loan.

Benefits of a Chattel Mortgage.

•  Interest is tax deductible
•  Depreciation is tax deductible
•  Term of the loan can be tailored to suit your payment plan.
•  You have the option to have a residual or balloon payment.
•  GST is claimable when your next BAS statement is submitted.

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