As an alternative to leasing or hire purchase, a chattel mortgage is a fixed interest rate loan with security provided by a mortgage over the relevant vehicle or equipment.
This finance solution is favoured by businesses that want to retain the equipment at the end of the term and account for GST on a cash basis.
What a chattel mortgage means
A chattel mortgage, unlike a lease or hire purchase agreement, gives you immediate ownership of the asset from the beginning of the loan.
Apart from mortgage stamp duty, the contract or repayments do not attract GST or stamp duty.
MFAA Lending Calculators
FREE calculators to work out how much you can borrow, your monthly repayments, and the amount of stamp duty you need to pay on a new purchase, plus much, much more!
Please get in touch if you would like to discuss any questions that you may have as a result of using these calculators.