Chattel Mortgage

Chattel Mortgage

Sometimes referred to as a ‘goods mortgage', this product is simply a mortgage over capital equipment where the financier gives the lessee ‘cash' to purchase a tangible asset, which becomes the subject of the mortgage. A fixed charge over the asset is registered on the ASIC report of the borrowing entity/company, which has to be paid out in full, and removed by the lender, prior to future sale of the asset.


  • Tax ownership of equipment with lessee – therefore allowing the lessee to claim GST back in full in next BAS statement (as if the item was paid for in cash).
  • No stamp duty payable on monthly payments
  • Flexibility and ownership as per CHP
  • Less expensive method of financing higher value capital equipment items


  • Relatively high establishment fees/legal fees/documentation
  • Stamp duty is payable up-front. It is calculated at 80 cents per $200, based on the amount financed
  • Only cost effective for larger transactions – a relatively expensive product for less expensive items (< $50,000)