Chattel Mortgage
This is a commercial lending product and is not covered by the National Consumer Credit Protection Act.
A Chattel mortgage is a commercial lending product and is normally used to purchase motor vehicles or plant and equipment. (“chattels”)
Under a Chattel Mortgage a finance company lends money to the customer to purchase the chattel/s, and the customer makes regular repayments. These payments can be paid monthly, or quarterly, or seasonally, to suit the borrower’s cash flow.
The customer takes ownership of the vehicle at the time of purchase, and the finance company takes out a "mortgage" over the goods by way of a Fixed Charge to provide security for the loan. Once the term of the loan is completed and any residual (balloon) value is paid, the finance company discharges the mortgage, giving the customer clear title to the car.
This type of finance is very popular nowadays as it allows the customer in most cases, for ABN holders to claim back all or part of the GST on the purchase of the goods. This can vary of course depending on your financial situation. It is always best to seek professional advice from your financial advisors / accountant’s, as they should be familiar with overall financial situation.
Should you wish to talk to us regarding a Chattel Mortgage, please complete the Loan Enquiry Form or give us a ring on 1300 559 974.
CommRural Lending Services
52 Wyndham Street
SHEPPARTON VIC 3630
Ph 1300 559 974
