A chattel mortgage is a type of car loan with some key differences. A chattel mortgage is made up of two parts – the chattel (the asset, or car) and the mortgage (loan.) You purchase a car with the funds a lender gives you and take possession and ownership of the car. The mortgage on your car is removed when you pay off the loan.
Frequently Asked Questions
Q. What is a chattel mortgage? How is it different from a car loan?
Q. I’m self-employed. Can I get a chattel mortgage?
YES! Chattel mortgages are designed for ABN holders and businesses. You must use the car for over 50% business use to qualify.
Q. I don’t have a deposit. Can I apply for a chattel mortgage?
YES! You can finance 100% of your car with a chattel mortgage. Approved customers can also borrow more than the total value of the car to fund extras such as insurance, CTP, scheduled services and more.
Q. How does a chattel mortgage look on my books?
As you take possession of the car, the car is registered as an asset on your balance sheets.
Q. I heard that I could claim tax breaks with a chattel mortgage. Is that true?
YES! You can claim the GST paid on the purchase price of a chattel mortgage on your next BAS. You can also claim the fuel input tax credit, depreciation and interest paid on repayments.
Q. I need a balloon payment. Can I get that?
YES! You can incorporate a balloon payment (also known as a residual value payment) into your chattel mortgage to offset regular repayments. Find out more about balloon payments on our blog.
Q. I want to get a quote but I’d rather talk to someone. May I?
YES! Savvy’s financial professionals are here on 1300 974 066 to answer all your questions.
Q. I represent a business and we need more than one car. Can we get multiple mortgages?
YES! We can structure a chattel mortgage to include one or more cars and vehicles. Call us to discuss your options on 1300 974 066.
Q. I also need car insurance, what do you recommend?
We recommend Savvy, of course! We find great premiums with lots of extras for our customers. Get a quote online or call us on 1300 974 066.
Q. Why should I take out a chattel mortgage over a consumer car loan?
We answer that question on our blog – with lots more tips – here.