The Complete Guide to Chattel Mortgages in 2026
What is a Chattel Mortgage?
A chattel mortgage is a type of secured loan where the lender takes an interest in the asset being financed (the "chattel") as security for the loan. Unlike other finance options, you own the asset from day one.
Key Benefits in 2026
- trong>Immediate ownership: The asset is yours from the start
- trong>GST claim: If registered for GST, you can claim the GST on the purchase price upfront
- trong>Depreciation: Claim depreciation on the asset each year under current ATO guidelines
- trong>Interest deductions: Interest payments are typically tax-deductible for business use
Who Should Consider a Chattel Mortgage?
Chattel mortgages are ideal for: - GST-registered businesses looking to maximise tax benefits - Companies wanting to own assets outright from settlement - Businesses seeking maximum tax deductions in the 2025-26 financial year
The Application Process
- Choose your asset and get a quote
- Submit your application with business documents
- Receive approval (often within 24 hours)
- Settlement and take delivery of your asset
2026 Updates
With interest rates stabilising in early 2026, chattel mortgages remain one of the most popular finance options for Australian businesses. The instant asset write-off thresholds have been updated — speak with your accountant about what you can claim this financial year.
Contact JLP Financial to discuss whether a chattel mortgage is right for your business.