Chattel Mortgage

Purchasing vehicles or other business plant equipment.

Chattel Mortgage are available for business entities.
The customer must hold and ABN, ARBN OR ACN and the product must be used primarily for business purposes.

Key points
• Chattel Mortgages are available for business entities.
• The customer must hold an ABN, ARBN or ACN.
• The product must be used primarily for business purposes.
• The customer owns the asset from the start of the agreement.

DETAIL
PurposeFinance for companies and business professionals who need motor vehicles, trucks, earth moving, agricultural, industrial plant or professional equipment.
TermMinimum of 12 months to a maximum of five years.
Minimum amount financed$7,500
Age of assetMotor vehicles – maximum age of 12 years at end of loan term.

Other equipment – age limit based on type of goods and intended use.

Please refer to your broker manager for more information around the other goods age.

Interest rateThe interest rate is fixed for the duration of the loan.
Payment frequencyMonthly, quarterly, semi-annual, annual, seasonal or irregular.
Payment methodsThe preferred method is direct debit. Other options include periodical payment from a nominated account and BPAY®.
DepositCustomers can make a deposit, or a deposit may be an approval condition.
Can insurance, fee and charges be financed?Yes
Balloon/residual valueYes, balloon payments are optional on contract terms up to five years.

Benefits to the client:
• The client owns the asset from the start of the agreement.
• Preserves “working capital” – no deposit, 100 per cent finance.
• Easier cash flow management – payment terms can be matched to income flows.
• Item being financed is normally sufficient security for the finance and, therefore, won’t tie up other assets.
• The client may be able to claim taxation benefits.

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