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A Car Loan is a personal finance product where the financier lends the customer funds for the purchase of a vehicle, and secures the loan against that vehicle. 

A Car Loan is can also be known as a Consumer Loan or a Secured Car Loan. 

Benefits of a Car Loan

1. Flexible contract terms ranging from 24 to 84 months (two to seven years)
2. A balloon value can be applied to the contract enabling the monthly repayments to be tailored to a budget
3. Choice of fixed or variable interest rates
4. Deposit (either cash or trade-in) may be us
5. A tax deduction is available when the vehicle is used for business purposes
6. The loan is secured against the vehicle, allowing lower interest rates

Who does a Car Loan Suit?

A Car Loan is suitable for individuals who wish to purchase a car and do not have significant business use of their vehicle.  

Tax Implications of a Car Loan 

As a Car Loan is a personal finance product, only normal tax deductions for depreciation and running costs can be claimed (on a pro-rata basis according to the percentage of business use). 

Chattel Mortgage

 A Chattel Mortgage is a commercial finance product where the customer takes ownership of the vehicle (chattel) at the time of purchase.

How does a Chattel mortgage work?

Under a 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 a Fixed and Floating Charge with ASIC. 

 Once the contract is completed, the charge is removed giving the customer clear title to the vehicle.

Benefits of a Chattel Mortgage

1. Flexible contract terms ranging from 24 to 60 months (two to five years)
2. A residual value (balloon) can be applied to the contract enabling the monthly
3. repayments to be tailored to a budget
4. Fixed interest rates
5. Monthly repayments are fixed
6. Costs are known in advance
7. Deposit (either cash or trade-in) may be used
8. A tax deduction is available when the vehicle is used for business purposes
9. A customer who is registered for GST can claim the GST contained in the vehicle
10. price as an input credit on their next Business Activity Statement (BAS)
11. No GST is charged on the monthly repayment or the contract balloon amount
12. The finance is secured against the vehicle, allowing lower interest rates

Who does a Chattel Mortgage suit?

A Chattel Mortgage is suitable for those companies, partnerships and sole traders who use the cash method of accounting (they record business income and expenses as and when they occur) as it allows them to claim the GST in the vehicle's price up-front. 

Tax Implications of a Chattel Mortgage 

GST is charged in the purchase price of the vehicle but not the monthly rental or the contract balloon (final instalment).

Where the customer is registered for GST, they can claim some or all of the GST contained in the vehicle price as soon as they lodge their next BAS, rather than over the term of the loan.

Under a Chattel Mortgage the customer can claim the interest charges on the contract and depreciation up to the Depreciation Limit as a tax deduction.  

Investment home loans are not too different from any other type of home loan. There are fixed, variable or split interest rates and flexible features such as Offset accounts and redraws. Two types of loan products that have been increasingly popular on the market

1. Interest only loans
2. Line of credit loans

1.Interest only

With most standard home loans your repayments combine the interest you owe on the principal amount you borrowed, plus a little bit of the that principal as well. In this way you repay only the interest on the principal during the term of the loan; therefore, you’re not paying off the principal of your loan. At the end of the interest only period – usually one to five years – you must start making Principal and Interest Repayments over the remaining term of the loan.

With an interest only loan the principal remains the same. You only have to pay the original amount you borrowed when you finally sell the investment property (and hopefully make some capital gain).

Benefits of this type of loan are:

• Your monthly repayments are less than they would be if you were pay off principal as well.
• You can get tax deductions on the interest payments, but none on principal repayments.
• It makes it easier to calculate the true returns from a property.

2.Line of credit loans

If you already own a property, a line of credit is a way for you to tap into any equity you have built up in that property and, use it as a deposit for your investment property.

A line of credit loan allows you to draw from a fixed amount at any time to pay for whatever you want. It's kind of like a credit card with a big limit but the equity in your home acts as security for the loan.

Call our lending specialists on 02 8094 8108

When it comes to buying investment property we know everyone’s situation is different, so we’ll go at your pace.

Our Lending Experts could advise you about:

• Ways to buy an investment property sooner, such as using your home equity
• Financing your total property cost - deposit, stamp duty and other up front expenses
• Different investment strategies and a loan structure that’s best for you
• Different repayment strategies that could benefit you at tax time¹
• How to save with our home loan package, discounts and special offers.

If you’re ready to go right now or have questions, talk to one of our Investment Property Experts.

We can offer you alternatives to traditional bank lenders to fund your business cash flow or major lenders to fund your business purchase.

What can we do for you in business finance?

1. Invoice Discount (Business Cash Flow solution) – we organize a cash out (up to 90%) of your receivables/debtor ledger. Allowing you to free up cash to fund your business growth before your customers meet the term due payments.
2. Business Loan – We assist to get funding for your new business up to 60% of the business purchase price. Franchise or established business.
3. Equipment Finance or Chattel Mortgage – we help you to get funding for your business to buy new equipment or machinery.
4. Commercial Hire Purchase (CHP) – Need a vehicle for your business? Or even a fleet of vehicles. We are here to source the most tax effective products for you to fund the purchase. At a very competitive rate.

COMMERCIAL LOANS

At General Mortgage, we understand that commercial loans can be difficult if you don’t know where to look. Whether you need a bank loan or whether you need a private lender we can help you make the best choice for your needs.

As per list above we specialize in all types of commercial loan finance small or large, including projects such as factory loans, townhouse loans, apartment loans & dual occupancy.

What is the best commercial loans packages to suit your needs

We strive to make your life easier by uncovering the best commercial loan package to suit your exact needs.

Commercial Loans have many facets around both their funding and the levels of finance that you’ll receive, depending on how viable the lenders deem your project to be.

Other elements include your location, the state of your local economy and your property’s lease. Most banks and lenders place as much reliance on affordability as they do on your current security position.

At General Mortgage, we make it our job to ensure you find a package that fits your current circumstances perfectly.

Real Estate Development

With larger commercial financing to be used in real estate development or on a larger business venture, you’re able to lend cash flow through some banks if you have a strong historical cash flow history or if your new business has a competent business plan and projection.

Our extended network of highly skilled brokers is based in every state and territory across Australia, and they are ready to support you with your borrowing needs whenever it suits you. To find out how we can make your life easier with the right commercial loan for you contacts us today via phone or email.

What is the term for commercial loans

The term of a commercial loan can vary from 1 year to 20 years. It really depends on the lenders policy and the type of loan structure you require. The stronger your cash flow and balance sheet position is the more options you will have.

We would discuss your business and personal financial goals and structure that with what the lender is prepared to offer. We will also review variable rate, fixed rate and interest only options. To help you decide which product or combination of suits you.

Because most commercial loans are over a shorter term, the interest only payments can be as much as half of a principal and interest loan.

If you're a first home buyer, you don't have the luxury of time or money to choose the wrong home loan, so we've saved you the trouble and distilled our home loan knowledge into a guide which goes through comparing and applying for a home loan all the way up to what grants are available.

Learn from the collective wisdom of one of Australia's largest comparison services and keep more of your money and time for the things you want to do.

A home loan is likely to be a 25 to 30 year commitment, so it is not a decision to be taken lightly. Before choosing your first mortgage, there are some things that you have to take into consideration:

• Does the loan suit your long term needs?
• Would you be able to meet your financial commitments if you reduce your working hours or salary?
• Are you planning to start a family? If you are, what financial impact will this have?

What to look for in your first mortgage

Some features you may want to consider when selecting your first home loan are:

• the ability to make additional repayments to your loan without extra charges
• the ability to make repayments via direct debit, ATMs, Internet and phone banking services
• 100% mortgage offset facility
• the ability to redraw funds at any time
• home loan fees
• can you restructure the loan further down the track?

What are benefits for first home buyers

• First Home Owner Grant

As a first home buyer, you might entitle to First Home Owner Grant. The First Home Owner Grant (New Homes) scheme (the Scheme) was established to assist eligible first home owners to purchase a new home or build their home by offering a $15,000 grant.

• First Home - New Home scheme

Apart from First Home Owner Grant, New Home scheme is another benefit that first home buyer might eligible to apply.

1. For new home buyers, the First Home - New Home scheme commenced from 1 January 2012 and provides eligible purchasers with exemptions from transfer duty on new homes valued up to $550,000 and concessions for new homes valued between $550,000 and $650,000.
2. For vacant land buyers, eligible purchaser buying a vacant block of residential land to build their home will pay no duty on vacant land valued up to $350,000, and will receive concessions for vacant land valued between $350,000 and $450,000.

• How to apply

Our home loan experts can process the grant for you or you can apply through a solicitor.

*For the latest information on the First Home Owner Grant, take the time to visit the government's First Home Owner Grant website or contact the State Revenue Office in your state.

Call us on +61 2 8094 8108

Our Home Loan specialists will help you: 

• Work through how much money you’ll need upfront, how to save for it or use a family guarantee
• Get an accurate picture of what you can afford to borrow and repay
• Gain confidence to make an offer on a new home with our 6 month Home Loan Approval in Principle( Pre-Approval)
• Get the benefits you’re eligible for, such as a First Home Owners Grant. They’ll even submit the application for you.