Chattel Mortgage

 

Chattel mortgage explained | Glynn Finance | Mortgage Brokers Sydney

What is a chattel mortgage

What is a "chattel mortgage"?

A Chattel Mortgage is a commercial car finance product.

Under a Chattel Mortgage a finance company lends money to the customer to purchase a car or other motor vehicle (the "chattel"), and the customer makes regular repayments.

The customer takes ownership of the vehicle at the time of purchase, but the finance company also takes out a "mortgage" over the vehicle by way of an ASIC-registered Fixed and Floating 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 removes the Charge, giving the customer clear title to the car. Alternatively, the customer can "trade in" the vehicle or re-finance the residual value.

HAVE US CALL YOU

Chattel mortgage benefits

 
Chattel mortgage is a flexible solution

Make it can work for you

A flexible solution

Flexibility is the strong point of the Chattel Mortgage.

This financial solution has made it very popular with individuals, small and medium business alike. Not only are they flexible, but chattel mortgages have many other benefits such as tax deductions, and ability to claim GST.

Our specialised team can work closely with you to better understand this and the advantages of using this particular finance structure.

You should also again be guided by your accountant or Financial planner as to the best structure for you.

HAVE US CALL YOU
Chattel mortgage benefits

Manage cash flow

Benefits

A Chattel Mortgage for financing a car or other vehicles has a number of main benefits:

  • Choice of terms (loan lengths) ranging from 24 to 60 months (two to five years);
  • Wide variety of residual value (balloon value) options, generally ranging from 0% to 60% depending on the type and age of the vehicle;
  • A deposit may optionally be used to reduce the size of the loan;
  • Tax deductions may be available when the car is used for business purposes;
  • Input Tax Credits may be available when the purchaser is registered for GST;
  • A Chattel Mortgage is secured against the vehicle, which allows lower interest rates.

HAVE US CALL YOU

Finance & Mortgage Broker Centres

Glynn Finance business centres are located across New South Wales


Sydney

Balmain (Inner West)

Bondi (Eastern)

Community Home Loans Australia Partners

Our Lenders

Glynn Finance has access to a panel of over 20 lenders, including the big four banks. Our online mortgage calculator provides a mortgage repayment estimate based on loan amount, indicative interest rates, loan term and structure. The tool also lets you compare the rates and features of various loans.

For a more precise estimate of your borrowing capacity contact a Glynn Finance mortgage specialist today.