A Chattel Mortgage is primarily used to purchase an asset for business use. Structured similarly to a regular mortgage, the lenders provide funds to purchase the asset (known as a Chattel) and register their security interest on the Personal Property Securities Register (PPSR) for the life of the loan. When all loan repayments have been made, you will have a full ownership of the asset. 

As a general rule, a Chattel Mortgage Car Finance is utilised when the financed asset is to be used wholly or primarily for business purposes (that is, the asset will be used for business more than 50% of the time). Although a Chattel Mortgage can be used to finance a variety of movable equipment types, it is usually used to finance motor vehicles.

While getting a car loan from your bank requires some sort of security apart from the car, some financial product let you get the car of your choice on a secured loan using that same car as security.

Using a chattel mortgage to get your car means you don’t have to use something else as security against the loan but the car. This might be a good choice as it has many advantages.

As your choice broker service, we at Gold Coast Car Broker Service can help you secure a car chattel mortgage after assessing your financial position if it will work for you. By helping, and connecting you to the right lender, getting your car can be super easy.

A secured loan is a financial transaction that requires you to give something in return for the money you loan.

A Chattel Mortgage is a type of secured financial transaction. This type of loan arrangement requires a person’s movable property as security for the loan. Examples of such property could be home fixtures, jewellery, accessory, stocks, bond, or a car.

A chattel mortgage is different from other type of secured loans where you use just any property to secure a loan. It is also not a loan taken to purchase an immovable property. It is a special type of financial product with loads of benefits.

The chattel mortgage loan is similar to commercial loans. The debtor chooses the term of payment and the method. However, in a chattel mortgage, the security must be a movable property.

Almost anyone can secure a chattel mortgage and it might be a good choice as it has many advantages. It is easy to obtain, especially for people with bad credit history.

A Car Chattel Mortgage is a type of financial product that lets you get the car of your choice and use that car as security against loan.

At Gold Coast Broker Service, we can help you secure a car chattel mortgage if you are qualified and it fits your needs. We assess all your financial positions, including credit history, and determine the right kind of recommendation particular to you. We help you find the right lender, help with the necessary paper works and make the process entirely easy for you.

Advantages of Chattel Mortgage

Securing a loan with movable properties has an advantage for the lender. The property is easily located, obtained, and can be sold to pay off the loan.

A debtor can also benefit by securing the loan with property less important to them or to their everyday life.

Other benefits include:

Low Interest rate

A chattel mortgage is a special form of secured loan. This means the interest rate will be lower, unlike other traditional, unsecured loans. You can also agree to fix the interest rate or set it at variable rates.

As long as the debtor keeps to the agreed rate, a chattel mortgage is easy and comfortable.

Generally, most loans require security e.g. landed property. However, the car itself is the security in a car chattel mortgage loan.

When you default on payment, the lender can repossess the car, but the low interest rate means usually prevent that from happening.

Tax Benefits

Since this type of loan is usually for business purpose, it is easy to deduct tax.

This means that the loan gives businesses ability to claim depreciation and interest cost since they can record the loan as purchase.

An example of a tax deduction benefit a business stand to gain is the GST. If you register your business for GST, you can claim the GST of the vehicle through your next Business Activity Statement (BAS).

A GST is a type of value added tax of 10 per cent on most (not all) goods and services in Australia. It is refundable. You can also apply for government tax benefits such as instant asset write-off and temporary full expensing.

Improved Cash flow

Business owners can take chattel mortgage loans and possess the car upon purchase, use the loan to expand their business and claim different tax benefits.

Another advantage of chattel mortgage loan is how businesses can finance the total amount of a vehicle without using their money.

All of these keep money in the business that can be useful for operating the business.

The relatively low interest rate and flexible payment plan means the repayment process will not affect your business.

Flexible payment terms

You can structure a Chattel Mortgage just like a consumer loan. This means you can pay regularly or at intervals until you pay the loan off.

The payment term can range from 12 to 60 months, with options to extend beyond. You can add other financial options like insurance cover, maintenance cost to your mortgage.


Despite the many benefits associated with Chattel Mortgage Loan, it is not regulated. The National Consumer Credit Protection Act does not recognize.

This however is an incentive. It removes some of the credit balances required by licensed credit providers to undertake by law. People with no chance of paying back the loan now have a chance, which could result in bad debt.

Borrowers become vulnerable. They are less likely protected by consumer protections. This means there might be dispute in loan agreements as they are responsible for all running costs.