A Chattel Mortgage is a commercial finance product. Under a Chattel Mortgage a finance company lends money to the customer to purchase an asset (the "chattel"), and the customer makes regular repayments. The customer takes ownership of the asset at the time of purchase, but the finance company also takes out a "mortgage" over the asset by way of an ASIC-registered Fixed Charge to provide security for the loan.

Once the term of the loan is completed and any residual (balloon) value is paid, the finance company removes the Charge, giving the customer clear title to the asset. Alternatively, the customer can "trade in" the asset or re-finance the residual value.