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.


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.

Chattel mortgage benefits

Manage cash flow


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.


Finance & Mortgage Broker Centres

Glynn Finance business centres are located across New South Wales and Victoria


Edgecliff (Eastern Suburbs)


Community Home Loans Australia Partners

Our Lenders

Glynn Finance has access to a panel of over 25 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.


*Important Information

The home loans compared on this page are chosen from a range of home loans Glynn Finance has access to. It is not representative of all of the products available in the market. Not all loans and lenders are available in all states. You may not be eligible for all or any of the loans displayed. The rates do not constitute an offer of credit or a quote. There are many factors that will determine your eligibility for a home loan, and a Glynn Finance mortgage brokers or performance and compliance coach can assist in explaining the criteria and evaluating your personal circumstances to find the right home loan for you. Please note that this calculation does not take into account payment of lender's mortgage insurance (LMI) which may be payable depending on the amount you wish to borrow compared to the value of the security property. LMI costs can be significant therefore you should ask if you require further information.
The information provided on this website is general in nature and for guidance purposes only. The product information provided is not a fully comprehensive statement of the relevant product's attributes. We endeavour to ensure that the product details and information provided are as accurate and up to date as possible but is subject to change and we recommend speaking to a Glynn Finance mortgage broker or performance and compliance coach to confirm. You are responsible for the final choice of any product that you may choose.

The information contained on this page and comparison rates are for secured home loan products of the lenders as shown, based on a loan amount of $150,000 and a term of 25 years.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Credit criteria, fees and charges apply.