Chattel mortgage

A chattel mortgage is a finance structure where the borrower takes ownership of an asset, typically equipment or a vehicle, at the time of purchase, while the lender registers a security interest over that asset on the Personal Property Securities Register until the loan is repaid. It is one of the most common structures for asset and equipment finance in Australia, favoured by businesses that want to own the asset outright from day one, potentially for depreciation and tax purposes their accountant can advise on. Unlike a lease structure, a chattel mortgage means the asset sits on the borrower's balance sheet from the outset, and monthly repayments reduce a loan balance rather than paying rent on an asset the financier owns. Lenders assess a chattel mortgage primarily against the asset's value and the borrower's serviceability, and can typically settle faster and with lighter documentation than a mortgage secured by real property.⚠

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Asset & equipment finance · Hire purchase · Finance lease