What Is a Chattel Mortgage?
A chattel mortgage is Australia's most popular business asset finance structure. It's how most businesses finance vehicles, trucks, equipment and machinery.
The name comes from two legal terms: chattel means a movable asset (as opposed to land or buildings) and mortgage describes the security arrangement — the lender holds a registered charge over the asset until you repay the loan in full.
In plain terms: you choose the asset, the lender funds it, and you own it from day one. You make fixed repayments over 2–7 years. Once the loan is paid, the lender discharges the mortgage and you own the asset outright — free and clear.
📌 Also Called: Commercial Goods Loan
CBA, NAB, Westpac and ANZ now call this product a "commercial goods loan" or "business loan – goods". The name is different. The product is identical. Same ownership structure, same GST treatment, same tax deductions — everything.
Why Is It So Popular?
Three powerful tax benefits working at once make it the default choice for most GST-registered businesses:
How a Chattel Mortgage Works — Step by Step
New or used vehicle, truck, equipment, or machinery — dealer or private sale
Use the chattel mortgage calculator to model asset price, term, rate and balloon
No credit check at this stage — just asset type, value and contact details
Free service — licensed broker compares rates across the Australian market
Conditional approval often same day for strong applications; 1–3 business days full approval
Lender pays the vendor. You own the asset immediately. Claim GST on your next BAS.
Chattel Mortgage Rates 2026
Updated July 2026 • Indicative rates only — your rate depends on asset type, age, credit profile and loan amount.
| Asset Type | New | Used |
|---|---|---|
| Cars & utes | 6.29% – 9.49% | 7.49% – 11.49% |
| Trucks & prime movers | 6.29% – 10.49% | 7.49% – 13.49% |
| Equipment & machinery | 6.99% – 11.49% | 8.49% – 14.99% |
| Agricultural equipment | 6.99% – 12.49% | |
| Medical & dental | 6.49% – 9.99% | 8.49% – 12.49% |
Full rates guide — what affects your rate and how to get the best deal →
Chattel Mortgage vs Other Finance Structures
Not sure which structure fits your business? Here's how chattel mortgage compares at a glance.
Chattel Mortgage vs Finance Lease
- ✓ You own the asset from day one
- ✓ Claim full GST upfront (one BAS)
- ✓ Claim depreciation (incl. write-off)
- ✓ Balloon is optional (your choice)
- ✓ Sell or modify the asset any time
- — Lender owns the asset during term
- — GST spread over repayments
- — Depreciation (finance lease method)
- — ATO mandates minimum residual
- — Pay residual to take ownership
Chattel Mortgage vs Hire Purchase
- ✓ Ownership from settlement
- ✓ Lender registers charge on PPSR
- ✓ Balloon is purely optional
- ✓ More lenders available
- — Technically lender owns during term
- — Ownership transfers at final payment
- — Similar tax treatment
- — Less commonly offered today
Who Can Use a Chattel Mortgage?
Any Australian business entity using the asset primarily for income-earning purposes (over 50% business use). You need an active ABN. That's the foundation.
Sole trader guide →
Standard Eligibility at a Glance
| Requirement | Standard (Prime) | Low-Doc / Specialist |
|---|---|---|
| ABN tenure | 2+ years | 3+ months |
| Credit history | Clean | Impaired — specialist lenders available |
| Business income | Verified (tax returns/bank statements) | BAS history or accountant declaration |
| Asset age at end of term | Up to 10–12 years | Up to 15 years (heavy plant) |
| Minimum loan | $5,000 | $2,000 (some lenders) |
Find Your Best Chattel Mortgage Rate
Licensed brokers. 40+ lenders. Free. No credit check to get a quote. Response within 2 business hours.
What Can You Finance With a Chattel Mortgage?
Any movable business asset used primarily for income-earning purposes. Common categories:
🚚 Trucks & Prime Movers
Kenworth, Volvo, Scania, Freightliner, Isuzu, Hino
🚗 Utes & Commercial Vehicles
HiLux, Ranger, Amarok, LandCruiser
⛏ Excavators & Earthmoving
Mini, mid-range & large excavators
🔢 Forklifts
Toyota, Hyster, Crown — electric or LPG
🌾 Agricultural Equipment
John Deere, Case IH, New Holland, Kubota
🧱 Construction Equipment
Bobcat, JCB, Caterpillar, Manitou
🍳 Hospitality Equipment
Commercial kitchens, refrigeration, POS
🩸 Medical & Dental
Imaging, chairs, diagnostic equipment
Frequently Asked Questions
More questions? Visit the full FAQ library with 30+ answers →
It's a business loan where you own the asset (car, truck, equipment) from the moment it's purchased. The lender holds a registered charge over it as security — similar to how a home mortgage works, but for movable assets. Once you repay the loan in full, the charge is removed.
Yes — identical product, different name. CBA, NAB, Westpac and ANZ rebranded chattel mortgages as "commercial goods loans" in the 2010s. Every aspect — ownership, GST treatment, interest deductions, depreciation, balloon options — is exactly the same.
Yes, through specialist lenders. You'll typically need a higher deposit (10–30%), may face slightly higher rates, and may need to provide additional supporting documents such as bank statements or an accountant declaration. Some lenders will consider 3–6 month ABNs for low-doc products.
Not necessarily. Many lenders offer 100% finance for strong applications with a 2+ year ABN and clean credit history. A 10–20% deposit can improve your rate and approval chances, and reduces your exposure to negative equity if the asset depreciates quickly.
Yes. Most lenders will finance used assets up to 12–15 years old at the end of the loan term. Age limits vary by asset type — trucks and heavy equipment generally have more flexibility than passenger vehicles. Older assets may attract a higher rate.
Strong (prime) applications can receive conditional approval the same day. Full approval with documentation typically takes 1–3 business days. Low-doc or complex applications may take 5–7 business days.
Yes. Most chattel mortgages allow early repayment. Some lenders charge an early termination fee (typically 2–3 months' interest). Ask your broker to confirm the break cost before you sign. If you're selling the asset, the payout figure includes any fees.
You pay the final regular repayment (or any balloon amount), the lender discharges the PPSR mortgage, and you own the asset outright. No inspection, no mandatory purchase — you already own it. You can keep using it, sell it, trade it in, or use it as security on future finance.