Current Chattel Mortgage Rates — July 2026
Indicative rates only. Subject to lender approval, credit profile, asset age and loan-to-value ratio. Rates shown are p.a. (per annum).
| Asset Type | Asset Age | Indicative Rate Range p.a. | Best Rate (Prime) |
|---|---|---|---|
| Cars & passenger vehicles | New | 6.29% – 9.49% | 6.29% |
| Cars & passenger vehicles | Used (up to 7 yrs) | 7.49% – 11.49% | 7.49% |
| Utes & commercial vehicles | New | 6.29% – 9.99% | 6.29% |
| Utes & commercial vehicles | Used (up to 7 yrs) | 7.49% – 12.49% | 7.49% |
| Trucks & prime movers | New | 6.29% – 10.49% | 6.29% |
| Trucks & prime movers | Used (up to 10 yrs) | 7.49% – 13.49% | 7.49% |
| Business equipment & machinery | New | 6.99% – 11.49% | 6.99% |
| Business equipment & machinery | Used (up to 10 yrs) | 8.49% – 14.99% | 8.49% |
| Agricultural equipment | New or used | 6.99% – 12.49% | 6.99% |
| Earthmoving & construction | New | 6.99% – 11.99% | 6.99% |
| Earthmoving & construction | Used (up to 12 yrs) | 8.49% – 15.49% | 8.49% |
| Medical & dental equipment | New | 6.49% – 9.99% | 6.49% |
| IT & technology | New | 7.49% – 12.49% | 7.49% |
| Solar & renewable energy | New | 6.99% – 10.99% | 6.99% |
*Indicative only. Actual rates subject to lender credit assessment. Rate guide last updated July 2026. Always confirm current rates with your broker before proceeding.
See Your Actual Rate — Free & No Credit Check
A licensed broker will compare your specific asset and credit profile across 40+ lenders to find your best available rate.
What Determines Your Chattel Mortgage Rate?
Lenders assess six key factors when setting your rate. Understanding these helps you know where you sit — and what to improve before applying.
Clean credit = lowest rates. A history of defaults, judgements, or multiple recent enquiries will push you into specialist tiers at higher rates. One default doesn't disqualify you — specialist lenders exist for exactly this situation.
2+ years ABN = prime rates. Under 2 years typically means low-doc products with higher rates and deposits. Under 6 months is specialist territory. A strong trading history shown through bank statements can offset a newer ABN.
Newer assets with strong resale value (e.g. new utes, trucks under 3 years) attract the lowest rates. Older, niche, or high-mileage assets are riskier for lenders and attract higher rates. Some lenders won't finance assets over 10–12 years old at loan end.
A 10–20% deposit reduces the lender's exposure (lower LVR = lower risk). Some lenders will reduce your rate by 0.25–0.75% for a meaningful deposit. No-deposit (100% finance) is available for strong applications but rates are marginally higher.
Some lenders offer tiered pricing where larger loans ($150K+) attract slightly better rates due to the fixed cost of originating a loan. Micro-loans under $15K sometimes have higher base rates.
Home owners (with equity) are statistically lower risk. Some lenders offer better rates for property-owning applicants, particularly for higher loan amounts or impaired credit scenarios.
Rate Scenarios — What You Might Expect
- 2+ year ABN
- Clean credit file
- New asset (or <3 years)
- Verified income
- 1–2 year ABN
- Mostly clean credit
- Used asset (3–8 years)
- BAS or bank statement income
- New ABN (<12 months)
- Impaired credit history
- Older used asset (8–12 yrs)
- Low-doc structure
How to Get the Best Chattel Mortgage Rate
Rates are not fixed — they're negotiated based on your profile. Here's how to position yourself for the best possible outcome:
- Use a broker, not a single bank — a broker can compare your application across 40+ lenders simultaneously. Banks can only offer their own product. A broker's competitive tension consistently delivers better outcomes.
- Have your documents ready — lenders reward speed and confidence. 2 years tax returns, 6 months bank statements, and a copy of the vehicle invoice or dealer quote gets you approved faster and at better terms.
- Check your credit file first — obtain a free copy from Equifax, Illion, or Experian. Dispute any errors before applying. Multiple applications in a short window can temporarily lower your score.
- Consider a deposit — even 10% can improve your rate and open up more lender options.
- Choose the asset wisely — mainstream brands with strong resale values (Toyota, Isuzu, Hino, JLG, Caterpillar) attract better rates than niche brands with limited resale markets.
- Don't over-extend the term — a 5-year loan on an asset that'll depreciate to near-zero in 4 years is a red flag for some lenders. Match the loan term to the useful economic life of the asset.
Fixed vs Variable Rates on a Chattel Mortgage
The vast majority of chattel mortgages in Australia are offered at fixed rates. This means your repayment amount is locked for the entire loan term — month one and month 60 are identical.
| Feature | Fixed Rate (Most common) | Variable Rate (Rare) |
|---|---|---|
| Repayment certainty | ✓ Yes — locked for full term | ✕ Fluctuates with rate changes |
| Budget predictability | ✓ High | ✕ Lower |
| Early payout | Break cost may apply | Usually no break cost |
| RBA rate sensitivity | ✕ Not affected | ✓ May benefit from rate cuts |
| Availability | All lenders | Some specialist lenders only |
For most Australian businesses, the certainty of a fixed rate makes budgeting easier and eliminates interest rate risk for the duration of the loan.
How Rate Affects Your Repayment
Based on a $100,000 loan over 5 years with no balloon:
| Interest Rate | Monthly Repayment | Total Interest Paid | Total Repaid |
|---|---|---|---|
| 6.29% | $1,941 | $16,460 | $116,460 |
| 7.50% | $2,001 | $20,060 | $120,060 |
| 9.00% | $2,076 | $24,560 | $124,560 |
| 11.00% | $2,174 | $30,440 | $130,440 |
| 13.50% | $2,305 | $38,300 | $138,300 |
The difference between a prime rate (6.29%) and a specialist rate (13.50%) on a $100K loan is over $21,800 in total interest. Every percentage point matters.
Rate FAQs
Yes — in almost all cases. Standard chattel mortgages in Australia use fixed interest rates, meaning your repayment is identical for the entire loan term. This gives you certainty for budgeting. Variable rate chattel mortgages are available from some specialist lenders but are uncommon.
Rates are similar across vehicle types for new assets. Used trucks (especially older, high-mileage units) can attract slightly higher rates than equivalent-aged cars due to the specialist resale market. Heavy earthmoving and aged equipment also tends to attract higher rates than mainstream commercial vehicles.
In most cases, yes. Brokers have accreditation with 40+ lenders including non-bank lenders that often price more aggressively than the major banks. The competitive tension of multiple lenders bidding for your business consistently delivers better rates. And the broker service is free — paid by the lender on approval.
Lenders update their rate tables regularly — sometimes weekly, sometimes in response to RBA cash rate decisions. Fixed rates are locked at the time of approval, so your rate doesn't change once you've accepted your loan offer. Indicative rates shown on this site are updated regularly but always confirm current rates with your broker.
Comparison rates are typically required for consumer credit products under the National Consumer Credit Protection Act. Chattel mortgages are business finance products, not regulated consumer credit, so comparison rates are not usually quoted. Always ask about all fees and charges (establishment, monthly, early payout) when comparing lenders — these can be more significant than a small rate difference.