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Chattel Mortgage Perth
The most used structure in Australian business asset finance, and the most casually explained. Here is how a chattel mortgage actually works, what drives the pricing, and how to set the balloon so it helps you instead of trapping you.
- Founded by two former bankers
- Commercial and business finance specialists
- Perth based, working Australia wide
- MFAA member
Chattel mortgage finance is simple only when the structure is right
Rockwall Finance is a Perth based finance broker arranging chattel mortgages for business vehicles and equipment across Australia. The product itself is straightforward: your business borrows to buy the asset, owns it from day one, and the lender holds security over it until the loan is repaid. The decisions around it, the term, the balloon, the deposit, the lender, and whether it should be a chattel mortgage at all, are where deals are won and lost.
How it actually works
- Your business buys and owns the asset. From settlement the vehicle or machine belongs to your entity, not the financier. The lender registers a security interest over it, which is released when the loan ends.
- Repayments are fixed for the term. Terms commonly run one to seven years, matched to the asset's working life, with the repayment set by the amount financed, the term, the balloon and the pricing your deal attracts.
- The tax treatment follows ownership. The business claims depreciation on the asset and the interest on the loan. GST registered businesses generally claim the GST in the purchase price at the next BAS rather than drip fed through repayments. How that lands in your position is your accountant's call, and we work alongside them.
- The balloon settles the end of the term. Trade the asset and clear the balloon, refinance it, or pay it out and keep the gear. Set correctly, the balloon mirrors the asset's value at that point and the changeover is clean.
What we put it on
- Utes, vans, light commercials and passenger vehicles used for business
- Trucks, trailers and transport equipment
- Earthmoving, mining and civil plant
- Agricultural machinery, from tractors to headers
- Workshop, warehouse, medical and hospitality equipment
- Dealer sales, auctions and private sales, new and used
The deeper equipment work lives on our dedicated pages: equipment and asset finance for the broad picture, mining and civil equipment where the job needs funding alongside the machine, and agricultural equipment where repayments need to follow the season.
Chattel mortgage, lease or hire purchase
The chattel mortgage dominates Australian business asset finance because ownership sits with you and the tax treatment is clean. A lease flips the ownership: the financier owns the asset and your business rents it, which suits some tax positions and some industries where assets turn over fast. Hire purchase sits between the two and has become less common. None of these is universally better. The right structure depends on your tax position, your balance sheet and how long you keep your gear, and the cost of getting it wrong compounds for the life of the loan. We set the structure with your accountant before we go near a lender.
What actually drives your pricing
Advertised chattel mortgage rates tell you almost nothing, because pricing is set deal by deal. The asset's age and source, dealer or private, the strength and age of your entity, your financials or the lack of them, the deposit or trade in, the term and the balloon all move the number. Two businesses buying the same ute can price very differently. The practical conclusion: the way to a sharp deal is not chasing a number from a comparison site, it is presenting your deal properly to the lender whose appetite fits it. That is the work we do, across a panel of bank and specialist lenders, and it is also why we will tell you honestly when your own bank's offer is the one to take.
Perth based, Australia wide, deadline aware
We arrange chattel mortgages for businesses across Perth and nationally. If you are working against a settlement deadline, an auction date or the end of the financial year, our EOFY settlement guide explains how fast different deals can realistically move, and we will give you a straight answer on your own timeline the same day you ask.
If your business buys vehicles or gear more than once a year, ask us about a master asset finance facility: an approved limit set up in advance so each chattel mortgage draws against it quickly, and you buy like a cash buyer instead of starting again every time.
Buying cars, utes or a fleet specifically? Our business vehicle finance page covers deposits, low doc options for ABN holders, and dealer versus private sale purchases.
Frequently asked questions
How does a chattel mortgage work?
Your business borrows to buy a vehicle or piece of equipment and owns it from day one. The lender registers its interest over the asset, the chattel, as security, and releases that interest when the loan is repaid. Repayments are fixed for the term, a balloon can be set at the end to lower the monthly commitment, and because the business owns the asset it claims depreciation and the interest component, with GST registered businesses generally claiming the GST on the purchase price at their next BAS.
What decides the interest rate on a chattel mortgage?
Pricing moves with the asset and the borrower more than the product. New assets from dealers price better than older private sale gear. Established entities with clean financials price better than new ABNs. Loan size, term, balloon and deposit all shift the number. This is why quoted headline rates mean little until a lender has seen your actual deal, and why comparing lenders on your specific asset and entity, which is what we do, beats comparing advertised rates.
What is the difference between a chattel mortgage and a lease?
Ownership. Under a chattel mortgage your business owns the asset from settlement and the lender holds security over it. Under a lease the financier owns the asset and your business pays to use it. That difference flows through to tax treatment, GST timing, balance sheet presentation and end of term options. Most Australian businesses buying vehicles and equipment use the chattel mortgage, but the right answer depends on your tax position, which we work through with your accountant.
Who can get a chattel mortgage?
Any entity using the asset predominantly for business purposes: companies, trusts, partnerships and sole traders with an ABN. The asset must be for business use, which is what separates a chattel mortgage from a consumer car loan. Newer ABNs and lower doc situations are still fundable with the right lender, usually with some combination of a deposit, a property backed guarantee or a stronger asset.
Should I set a balloon payment?
A balloon lowers the monthly repayment by deferring part of the principal to the end of the term, and it makes sense when it is matched to the asset's realistic value at that point, so the trade in or refinance covers it. It causes trouble when it is set high just to make repayments look cheap. We set balloons against the asset's actual trade cycle, which keeps the changeover to your next machine or vehicle planned rather than painful.
Get started
Want to talk it through?
Book a meeting or make an enquiry. We'll tell you whether it's fundable, how we'd structure it, and which lender we'd take it to. No obligation.