Chattel Mortgage Australia — Rates from 6.59%

A chattel mortgage covers any movable business asset. If it's not bolted to the ground, there's a good chance it qualifies.

Chattel mortgage amounts range from $5,000 to $2,000,000, with rates from 6.59% and terms from 1 to 7 years. Most lenders offer up to 100% of the purchase price for new assets and 80–90% for used assets.

Your borrowing limit depends on the asset's value and age, your business turnover, time in business, and credit history. Newer assets generally attract sharper rates and longer terms. Businesses trading for 12+ months with stable cash flow will qualify for the strongest offers.

A balloon or residual payment (typically 10–30% of the asset value) can lower your regular repayments. The trade-off: you'll need to pay, refinance, or sell the asset to clear that lump sum at the end of the term.

Eligibility for a chattel mortgage is relatively straightforward because the asset itself acts as security. Lenders focus on your business's ability to service the repayments rather than requiring additional collateral.

Start-ups (under 12 months trading) can be considered on a case-by-case basis — some lenders specialise in newer businesses with strong personal credit.

Apply online in minutes and receive quotes from multiple lenders. Choose the offer that fits your cash flow, upload your documents, and we'll handle settlement with the seller.

The process is faster than most business finance — because the asset secures the loan, lenders can assess and approve with less paperwork. Straightforward applications often settle within 24–48 hours.

The tax treatment is one of the main reasons businesses choose a chattel mortgage over a lease.

Because you own the asset from day one, you can claim depreciation on the full purchase price. Interest charges on the loan are also tax-deductible as a business expense. And if you're GST-registered, you can claim the GST credit on the purchase price in your next BAS — rather than claiming GST on each lease payment over the life of the agreement.

For businesses purchasing assets before 30 June, the instant asset write-off (currently $20,000 for eligible businesses) or broader depreciation incentives can provide significant upfront deductions. Talk to your accountant about how a chattel mortgage fits into your EOFY tax strategy.

Comparing multiple lenders is the single biggest lever. Rates, fees, and structures vary significantly across our panel of 50+ lenders — even a 0.5% rate difference on a $100,000 facility saves over $1,500 across a 5-year term.

Newer assets attract sharper rates, so timing your purchase matters. Avoid unnecessary add-on fees (extended warranties, insurance products bundled by dealers) and check for establishment, documentation, and early payout fees before signing.

If cash flow allows, choosing a shorter term reduces total interest — but a well-placed balloon can give you breathing room without blowing out the total cost.

Choosing between a chattel mortgage, hire purchase, finance lease, and operating lease comes down to three questions: do you want to own the asset? How do you want to handle GST? And what works best for your cash flow?

A chattel mortgage gives you immediate ownership and the strongest GST/depreciation position — ideal for established businesses that want the asset on their balance sheet.

Hire purchase also leads to ownership, but at the end of the term. GST is typically claimed progressively on each payment. It suits businesses that want ownership but prefer to spread the commitment.

A finance lease keeps the asset off your balance sheet and lease payments are fully deductible. Useful if you plan to upgrade frequently or want to preserve borrowing capacity.

An operating lease is a pure rental — no ownership, no residual obligation. Best for short-term needs or assets that depreciate quickly (IT equipment, for example).