A Chattel Mortgage is another method of finance used to acquire vehicles, equipment, and machinery.

Under a Commercial Chattel Mortgage, the financier advances funds to the customer to purchase a vehicle, and the customer takes ownership of the vehicle (chattel) at the time of purchase.

The financier then takes a mortgage over the vehicle as security for the loan, by registering their interest over it with the PPSR. Once the contract is completed and the final payment has been made, including any residual/balloon payment, the security interest is removed giving the customer clear title to the vehicle.