Chattel Mortgage - Things to Know Before Apply

A Chattel Mortgage is a type of finance which is typically used by businesses to finance the purchase of commercial vehicles, cars, business equipment and office equipment. Anyone wishing to finance the purchase of goods for business purposes can take the benefits from chattel mortgages. In other word a chattel mortgage is a business finance product which gives the benefits to customer to takes ownership of the commercial vehicles, cars and other business equipment at the time of purchase. rnThere are many benefits of chattel mortgage. The range of chattel mortgage terms from 12 to 60 months. Tax deduction option is available if you use it for business use. Customers registered for GST can claim the GST that is included in the vehicle purchase price. Chattel mortgage repayments are fixed for the term. A balloon payment will lower your regular monthly payments; this improves your cash flow and makes your motor vehicle more affordable. No GST will be charged on the monthly chattel mortgage payment. The Interest Rate is fixed for the term of the chattel mortgage agreement. rnThe establishment fee are payable with no applicable GST. Interest rate is fixed throughout the term of the loan. An ASIC fee is applicable for companies which will vary between states. If you want a cash booklet the additional charges may apply. Repayment schedules are flexible, can be made fortnightly, monthly, yearly, quarterly, semi annually and seasonal. rnConsider a chattel mortgage if you use your motor vehicle completely or mostly for business purposes. This means that the motor vehicle is used for business for more than half of the time. It's also a huge alternative if you would like to own the commercial vehicle at the end of the lease.