A chattel mortgage is a type of loan contract used in some states with legal systems derived from English law. It is a loan for purchasing movable personal property, such as a manufactured home, construction equipment, or a vehicle, where the property, or chattel, secures the loan. The lender holds an ownership interest in the property until the borrower has fully paid the loan. If the borrower defaults on the loan, the lender can recoup costs by selling the asset. Chattel mortgages are commonly used by companies, partnerships, and sole traders to fund the purchase of cars, commercial vehicles, and other business equipment in Australia. In England and Wales, chattel mortgages are seen as a form of security interest for lenders in certain financing scenarios. Chattel mortgages are different from traditional mortgages in that they can only be used for movable property, and they usually only finance the movable property itself and not the land where it sits. Chattel loans have shorter repayment periods, lower processing fees, and lower maximum loan amounts than their conventional counterparts.