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Chattel Mortgage Frequently Asked Questions
If you haven’t used a finance broker before, you probably have some questions. Let’s help you get some answers.
Who offers chattel mortgage?
Most finance providers will offer chattel loans. However, different lenders may use different terminology and refer to a chattel loan as a goods loan, car loan, or equipment loan.
When choosing the right finance provider for you, it’s important to confirm the legitimacy of the lender. Things you should check when comparing lenders include:
- Their ABN – every lender will have an ABN which you can search for via the ABN’s Lookup tool.
- Their Australian Credit Licence number – as with the ABN, every lender must have an Australian Credit licence which can be checked via the ASIC Credit Licensee register.
- Reviews – reading reviews of previous or existing customers can be a valuable tool to determine if a lender is not only legitimate, but reliable and professional as well.
Do chattel mortgage repayments have GST?
In some cases, GST is included in the purchase price of the vehicle or equipment and is not applied to ongoing loan repayments. However, every loan will have its own specific terms and conditions and it is best to speak with both the lender and your account.
Are chattel mortgages tax deductible?
Usually, the chattel mortgage repayments are not tax deductible. However, depending on your individual circumstances, you may be eligible to claim some interest payments as a tax deduction. It’s important to consult with your account or the Australian Taxation Office when considering your tax options.