Chattel Mortgage
A Chattel Mortgage, similar to a property mortgage, is essentially the lender taking a Mortgage (security) over the Chattel (goods) being financed.
Once the loan is fully repaid, the lender will remove this security interest.
A Chattel Mortgage is also known as an Equipment Loan.
Features of a
Chattel Mortgage:
✅ Ownership from Day One
Unlike some lease or rental options, you own the asset from the beginning of the loan term.
✅ Tax Benefits
You may be able to claim GST on the purchase price (if you're registered for GST).
Interest payments and depreciation may be tax-deductible.
✅ Flexible Repayment Terms
Choose repayment terms that suit your cash flow, typically ranging from 12 months to 5 years.
Option to include a balloon payment to reduce monthly costs.
✅ Competitive Interest Rates
Generally lower interest rates compared to unsecured loans since the asset is used as security.
✅ No Ongoing Fees
Most chattel mortgages don’t have monthly account-keeping fees, helping to reduce costs.
Please note - This information is general in nature and does not constitute taxation advice. It does not consider your specific financial circumstances. Please consult your accountant for taxation advice.