How does a Chattel Mortgage work?
Under a Chattel Mortgage the financier provides funds to the customer for a purchase of a vehicle. The customer takes ownership of the vehicle (the chattel) at the time of purchase. The financier then takes a mortgage over the vehicle as security for the loan, by way of a Fixed and Floating Charge registered with ASIC. Once the contract is completed, the charge is removed giving the customer clear title to the vehicle.
