What happens if you default on a chattel mortgage?

If a borrower defaults on a chattel loan, the creditor or lender can take possession of the personal property. This means that if you run into hard times financially, you could end up losing your home.

Are there any tax implications of a chattel mortgage?

The goods and services tax (GST) on a vehicle or personal property entitles the borrower to claim an input tax credit. Borrowers are also free to claim interest or depreciation costs.

Do chattel mortgage lenders own my personal property?

With a chattel mortgage the lender holds an interest in the property as security/collateral for the loan. This would typically be considered a lien, for example buying a vehicle with using a secured loan. The title is still held by the buyer. However, the lender has a lien on the property that stays until the loan is paid off in full.

Chattel Mortgage: Everything You Should Know