Equipment Finance Comparison - Chattel Mortgage vs Lease
Compare a chattel mortgage, a finance lease and an operating lease on the same asset. The repayments are often similar - what differs is who owns the asset, when you claim GST, and whether you depreciate the asset or deduct the payment.
Frequently asked questions
Which is cheapest?
On the raw repayment a chattel mortgage and a finance lease are usually close. The real difference is cash flow and tax timing: the chattel mortgage returns the GST immediately, the lease spreads it.
Does an operating lease keep debt off my balance sheet?
Historically that was the main appeal. Accounting standards have tightened, and most leases now bring a right-of-use asset onto the balance sheet. Check with your accountant for your reporting framework.
General advice warning: This calculator provides general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice.
Results are estimates based on the inputs and assumptions shown. Any interest rate used is an example and is not an offer of credit. Speak to a licensed credit representative before acting on these figures.