Chattel Mortgage

Chattel mortgages are business loans mostly used for purchasing vehicles or equipment.. At TYG Finance, we offer you some of the best chattel mortgage rates in Australia. But before you make your chattel mortgage purchase, it’s essential to understand this type of loan, how it works, and its benefits. 

What is Chattel Mortgage? 

Chattel mortgages are loans in which the borrowed object is also considered as security for that loan.

At TYG Finance, you can get these kinds of loans for purchasing company vehicles. Still, you can also get a chattel mortgage for a truck and other equipment. 

How a Chattel Mortgage Works: What You Can Expect 

Similarly to secured loans for cars, we will provide you with all the funds you need to buy a vehicle. You become the owner of that vehicle when the purchase is made. 

After that, we will give you a mortgage for your car, and it will be used as security. When the contract has ended, the mortgage will be lifted, and you can do whatever you want with the vehicle. 

Benefits of TYG Finance Chattel Mortgages

These types of loans are great for smaller companies as they offer flexible repayments. We even offer you 100% loan financing in some cases. Simply put, you won’t have to deposit anything initially.  

With TYG Finance chattel mortgages, you get several other benefits: 

  • We offer you considerably lower interest rates than you would get with unsecured loans. 
  • With our chattel loans, you can choose lump sum payments at the end, but you will have increased interest. 
  • One of the best benefits is the option to claim interest or depreciation. Furthermore, you 
  • can immediately pay the GST on the vehicle with your BAS. 

FAQs

Chattel mortgage vs. lease, what’s better? 

Both of these options are good for financing business vehicles. However, depending on your needs, one of them might be better for you. Leases are basically long vehicle rentals. You pay monthly based on operation costs, mileage, registration, and servicing. 

Chattel mortgages leave you with the ownership of the vehicle. But you will pay for the running costs. This also means that you could resale the vehicle after the mortgage has been paid off and potentially save lots of money. 

Who should get a chattel mortgage? 

Individuals or businesses that need a vehicle for business reasons.

Can self-employed people get a chattel mortgage? 

Yes! With TYG Finance, we offer mortgages for both businesses and ABN holders. 

Do I need to have a deposit to apply? 

No, you can use a chattel mortgage to cover the whole value of your vehicle. 

Do you offer Residual payments? 

We offer residual payments for offsetting regular payments of your chattel mortgage.