Modern Home Loans logoModern Home Loans
For business and personal asset finance

Vehicles, equipment, and asset finance done right.

Danny arranges chattel mortgage, novated lease, and hire-purchase finance for Bulimba businesses and individuals — across an aggregator panel covering banks and specialist asset-finance lenders.

  • $340Msettled
  • 13+ yearsbroking
  • 80+lender panel

Asset finance has its own lender pool and its own logic. Rates and structure depend on the asset type, age, and use — and on whether the borrower is a business or individual. Danny matches the asset and the borrower to the lender whose appetite fits.

Chattel mortgage

The most common business asset-finance product. The borrower owns the asset from day one; the lender registers a security interest on the Personal Property Securities Register (PPSR). For GST-registered businesses, the GST on the asset can typically be claimed back through the next BAS — interest and depreciation are deductible, subject to the business-use proportion.

Suits motor vehicles, plant and equipment, technology, and most other business assets. Loan terms typically 1–7 years; balloon payments at the end of term are common, especially on motor vehicles, to reduce monthly repayments.

Novated lease

A salary-packaging arrangement where the lease, running costs, and insurance are bundled into a single pre-tax payment from the employee's salary. The employee uses the vehicle, the employer is the lessee on paper, and the financier owns the vehicle. Suits PAYG employees with a cooperative employer; the FBT calculation matters more than the lease rate.

Electric vehicles attract additional FBT exemptions under the current rules, making EV novated leases meaningfully more cost-effective for eligible employees. Confirm current FBT settings with a tax adviser before proceeding.

Hire purchase and operating lease

Hire purchase: the lender owns the asset; the borrower hires it with an option to purchase at the end of the term. Tax and accounting treatment sits between a chattel mortgage and a lease, and varies depending on the business's reporting framework.

Operating lease: a true rental, no ownership at end of term, asset returned to the lessor. Suits assets with a short useful life and a business that doesn't want the residual-value risk.

Lender pool and asset categories

The asset-finance lender pool is broader than the residential mortgage pool — alongside the major banks, there's a strong group of specialist asset-finance lenders with appetite for older vehicles, niche equipment, and short-trading-history ABN borrowers. Specialty assets — yellow goods, marine, aviation, agricultural — sit with their own subset of the panel.

Frequently asked questions

Direct answers to questions Danny hears most often about vehicle, equipment, and asset finance. General information only — nothing here is personal credit or tax advice.

What's the difference between a chattel mortgage, hire purchase, and a lease?

A chattel mortgage transfers ownership to the borrower at settlement, with the lender holding a security interest. Hire purchase keeps ownership with the lender until the final payment, after which the borrower can purchase the asset. An operating lease is a true rental — the asset returns to the lessor at the end of the term. Each has different tax, GST, and accounting treatment.

Which asset finance product suits a business buying a work vehicle?

Chattel mortgage is the most common choice for a business buying a vehicle: the borrower owns it from day one, GST on the purchase is typically claimable on the next BAS, and interest and depreciation are deductible based on business-use proportion. Operating lease and hire purchase are alternatives in specific tax or fleet-management scenarios — confirm with an accountant.

Can asset finance be arranged for a vehicle bought privately?

Yes. Most asset-finance lenders fund private (non-dealer) purchases as well as dealer purchases — sometimes called "consumer asset finance" or "private sale finance". Documentation requirements are usually a roadworthy certificate, a contract of sale, and confirmation that there are no existing encumbrances on the vehicle (PPSR check). Rates may be slightly higher than dealer-funded purchases.

What is a balloon payment, and is it worth using?

A balloon (or residual) is a deferred lump sum at the end of the loan term that reduces the regular repayment amount. Common on motor vehicles. The trade-off is total interest paid is higher because principal is paid down more slowly, and the balloon must be settled, refinanced, or rolled into a new facility at term-end. Suits borrowers prioritising cash-flow over total interest cost.

How is novated leasing different from a normal car loan?

A novated lease is a salary-packaging arrangement: lease payments and running costs are deducted from the employee's pre-tax salary, with the employer as the lessee on paper. Tax effectiveness depends on FBT treatment — the operating cost method or statutory formula method — and the employee's marginal tax rate. EVs attract additional FBT exemptions under current rules. Confirm with a tax adviser.

What's the typical loan term for asset finance?

Standard terms run 1–7 years for vehicles and most equipment, sometimes longer for high-value plant or commercial yellow goods. Term length is usually capped to the expected useful life of the asset minus a small buffer — lenders rarely write a 7-year term against a 5-year-life asset. Danny matches term to use case so monthly cashflow stays manageable without extending well beyond the asset's working life.

Can asset finance be approved on a low-doc or ABN-only basis?

Yes — a number of specialist asset-finance lenders fund ABN-only and low-doc applications, typically requiring 12+ months of trading history, registered ABN and GST, and a clean credit profile. Rates are generally higher than full-doc bank rates; turnaround is usually faster (24–72 hours for straightforward files). Lender selection makes the practical difference for low-doc files.

Prefer to talk it through?

Or book a coffee with Danny instead.

Thirty minutes on Oxford Street, Bulimba — or by video. No pressure, no spreadsheet homework before you arrive.