Written by David Blackman
Specialist Asset & Equipment Finance Broker • 20+ years banking & fleet experience
AFG Award Winner 2022 & 2025
10+ Years Specialist Brokerage
Indicative rates across chattel mortgage, finance lease & operating lease — updated monthly to help you compare.
Last updated: March 2026
The rates below are indicative only and represent typical ranges offered by Australian lenders for each finance structure. Your actual rate depends on several factors including ABN age, credit history, asset type, and deposit. Use our repayment calculator to estimate repayments based on your specific scenario.
| Finance Structure | Rate Range (p.a.) | Typical Term | Best For |
|---|---|---|---|
| Chattel Mortgage | 5.99% – 8.99% | 2 – 7 years | GST-registered businesses wanting ownership + tax deductions |
| Commercial Goods Loan | 5.99% – 8.99% | 2 – 7 years | Same as chattel mortgage (modern lender terminology) |
| Finance Lease | 6.49% – 9.99% | 2 – 5 years | Businesses wanting 100% lease payment deductions |
| Operating Lease | 7.00% – 10.50% | 2 – 5 years | Off-balance sheet financing, fleet turnover |
| Novated Lease | 6.49% – 9.49% | 1 – 5 years | Employees salary packaging a vehicle |
*Rates are indicative and based on established businesses (2+ years ABN) with clean credit. Actual rates subject to lender approval.
Rates can vary depending on the type of asset being financed. New assets and essential equipment typically attract lower rates due to stronger residual values and lower risk.
| Asset Type | New Asset Rate | Used Asset Rate | Typical Loan Amount |
|---|---|---|---|
| Trucks & Prime Movers | 5.99% – 7.99% | 6.99% – 9.99% | $80,000 – $500,000+ |
| Utes & Commercial Vehicles | 5.99% – 7.49% | 6.49% – 8.99% | $30,000 – $120,000 |
| Machinery & Equipment | 6.49% – 8.49% | 7.49% – 10.99% | $20,000 – $500,000+ |
| Earthmoving & Excavators | 5.99% – 7.99% | 6.99% – 9.99% | $50,000 – $1,000,000+ |
| Agricultural & Tractors | 5.99% – 8.49% | 7.49% – 10.49% | $40,000 – $800,000+ |
| Electric Vehicles | 5.49% – 7.49% | 6.99% – 8.99% | $40,000 – $200,000 |
Lenders assess several factors when determining your interest rate. Understanding these can help you position your application for the best possible rate.
Businesses trading for 2+ years with a consistent income history attract the best rates. Start-ups (under 2 years) typically pay 1–3% more.
Both personal and commercial credit scores are assessed. Clean credit (no defaults, paid bills) is essential for tier-1 rates. Minor impairments push you to specialist lenders.
New assets get lower rates than used. Essential equipment (trucks, machinery) typically rates better than niche or rapidly depreciating assets.
A 10–20% deposit reduces your loan-to-value ratio and can lower your rate by 0.5–1.0%. Some lenders offer no-deposit finance at a premium.
Chattel mortgages typically have the lowest rates because the lender takes a security interest. Operating leases carry more lender risk, so rates are higher.
Shorter terms (2–3 years) may attract marginally lower rates, but longer terms (5–7 years) reduce monthly repayments. Most businesses choose 4–5 years.
| Tier | Profile | Typical Rate | Deposit Required |
|---|---|---|---|
| Tier 1 — Prime | 2+ years ABN, clean credit, strong financials | 5.49% – 7.49% | 0% – 10% |
| Tier 2 — Near Prime | 1–2 years ABN, minor credit issues, growing business | 7.49% – 9.99% | 10% – 20% |
| Tier 3 — Specialist | <1 year ABN, credit impairments, start-up | 9.99% – 14.99% | 20% – 30% |
Not sure which tier you fall into? Our asset finance with bad credit guide explains how specialist lending works, and our start-up finance guide covers options for newer businesses.
Unlike home loans, most asset finance in Australia uses fixed interest rates. This means your repayments won't change during the loan term regardless of RBA cash rate movements. However, the prevailing cash rate influences the base cost of funds for lenders, which flows through to the rates they offer new applicants.
Current RBA Cash Rate: As of March 2026, the RBA cash rate is 4.10%. Asset finance rates sit above this base rate, with the margin reflecting credit risk, asset risk, and lender margin. A falling cash rate environment generally means better rates for new applicants, though existing fixed-rate loans are unaffected.
As of March 2026, indicative chattel mortgage rates range from 5.99% to 8.99% p.a. for established businesses with strong credit profiles. Actual rates depend on ABN age, credit history, asset type, and loan-to-value ratio.
Key factors include: ABN trading history (2+ years is ideal), personal and business credit score, asset type and age (new vs used), deposit amount/LVR, finance structure chosen, and loan term length.
Most asset finance in Australia is offered at a fixed rate for the life of the loan. This means your repayments stay the same regardless of RBA cash rate movements. Some lenders offer variable rates, but fixed is the norm for commercial asset finance.
Yes, but rates will be higher. Specialist non-conforming lenders offer asset finance to businesses with credit impairments, typically at rates from 9.99% to 14.99% p.a. A larger deposit (20–30%) can help offset credit risk. See our bad credit guide.
Finance lease rates are typically 0.5% to 1.0% higher than chattel mortgage rates because the lender retains ownership of the asset during the lease term. However, finance leases offer different tax advantages that may offset the rate difference. Compare them in our chattel mortgage vs finance lease guide.
Enter your asset value, deposit, and preferred term to see estimated repayments across Chattel Mortgage, Finance Lease, and Operating Lease — with Year 1 tax deductions.
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