Current rate ranges for every business profile and equipment type. Updated regularly with actual market data — not hypothetical ranges. Find out where you sit before you apply.
Indicative rate ranges across all equipment types and business profiles. Rates are for secured chattel mortgage structures, which represent the majority of equipment finance in Australia.
| Business profile | New equipment (major brand) | Used equipment (good condition) | Specialist/niche equipment |
|---|---|---|---|
| Established (3+ years), clean credit | 5.5% – 8.0% | 7.0% – 10.0% | 7.5% – 11.0% |
| Growing (1–3 years), clean credit | 7.5% – 10.0% | 8.5% – 11.5% | 9.0% – 12.0% |
| New business (under 12 months) | 9.0% – 13.0% | 10.0% – 14.0% | 11.0% – 15.0% |
| Low-doc (add to above ranges) | +0.5% – 2.0% | +0.5% – 2.0% | +0.5% – 2.0% |
| Credit issues (defaults, adverse) | 12.0% – 15%+ | 13.0% – 15%+ | 14.0% – 15%+ |
Rates current as of June 2026. Comparison rates will be higher once fees are included. Individual circumstances vary. Subject to lender criteria and approval.
Rows = your business profile. The stronger your trading history and credit, the lower your rate. An established business with three-plus years of clean BAS lodgements and no credit issues sits in the top row — the best rates available.
Columns = the equipment. New equipment from well-known brands (Caterpillar, Komatsu, Toyota, Isuzu, Kenworth) holds its resale value, which gives lenders confidence. Used equipment in good condition is slightly higher. Specialist or niche equipment with thinner resale markets sits at the top of the range.
The "low-doc" row adds to any other row. If you're an established business with clean credit but your tax returns aren't lodged, add 0.5–2% to the established rate. If you're a new business applying low-doc, add it to the new business rate.
Different equipment types attract different rates because lenders assess resale value differently. Here's how the main categories stack up for established businesses with clean credit:
| Equipment type | Typical rate range | Why |
|---|---|---|
| Trucks — prime movers | 5.5% – 7.5% | Strongest resale market. Always in demand. Lenders compete for this business. |
| Trucks — rigids, tippers | 6.0% – 8.0% | Strong resale. Slightly higher than prime movers due to wider brand variation. |
| Excavators — major brands | 5.5% – 8.0% | Cat, Komatsu, Volvo have strong domestic and export resale markets. |
| Loaders, bobcats, skid steers | 6.0% – 9.0% | Good resale. Smaller values mean slightly higher rates on a percentage basis. |
| Manufacturing/CNC machinery | 6.5% – 10.0% | Premium brands (Mazak, DMG Mori, Trumpf) attract better rates than generic. |
| Agricultural equipment | 6.5% – 10.0% | Tractors and harvesters from John Deere, Case, Fendt hold value well. |
| Commercial vehicles (utes, vans) | 6.5% – 9.0% | Strong resale. High lender competition in this segment. |
| Medical/dental equipment | 7.0% – 11.0% | High value but specialist resale market. Specialist lenders price competitively. |
| Food processing/hospitality | 8.0% – 12.0% | Custom-built or specialised equipment has limited secondary market. |
| Office fit-out/technology | 8.0% – 12.0% | Fastest depreciation. Technology becomes obsolete. Higher rates reflect this. |
Rates for established businesses with clean credit. Add 1–3% for newer businesses. Add 0.5–2% for low-doc. Rates current as of June 2026. Individual circumstances vary.
1. Your business trading history. This is the single most influential factor. Three-plus years of consistent BAS lodgements and clean bank statements signals a stable business. Lenders reward this with their best rates. A business under 12 months old hasn't proven itself yet — the rate reflects that uncertainty.
2. Your credit profile. Both personal credit (your individual score) and business credit (payment history with suppliers, existing finance conduct) matter. A clean file gets the best rates. Defaults, late payments, or court judgments push rates up or narrow your lender options. See equipment finance with credit issues.
3. The equipment's resale value. Lenders need to know they can recover their money if you default. A new Kenworth T610 with a predictable resale curve is lower risk than a custom-built packaging machine with no secondary market. Brand, age, condition, and market demand all factor in.
Loan amount. Larger purchases (above $100,000) can sometimes attract marginally better rates because the lender earns more revenue on the deal. Very small amounts (under $20,000) may attract proportionally higher rates because the lender's administration cost is the same regardless of loan size.
Term length. Rates are generally consistent across 3–7 year terms with the same lender. A longer term means more total interest (because you're borrowing for longer), but the annual rate itself doesn't usually change dramatically.
Deposit. A deposit reduces the lender's exposure and can improve your rate by 0.25–1.0%. Even 10–20% can make a meaningful difference, especially for newer businesses or used equipment.
| Structure | Typical rate range | Notes |
|---|---|---|
| Chattel mortgage | 5.5% – 12% | Most common. Best rates for most businesses. |
| Commercial hire purchase | 6.0% – 12% | Similar to chattel mortgage. Slightly fewer lender options. |
| Finance lease | 7.0% – 15% | Higher because lender retains ownership (more complex structure). |
| Operating lease/rental | 8.0% – 15%+ | Highest because the lender carries residual risk. |
See chattel mortgage vs hire purchase — which structure suits your business.
Small percentage differences add up fast on equipment purchases.
| Rate | Monthly repayment | Total interest | Total cost |
|---|---|---|---|
| 6.0% | $1,933 | $15,980 | $115,980 |
| 8.0% | $2,028 | $21,680 | $121,680 |
| 10.0% | $2,125 | $27,480 | $127,480 |
| 12.0% | $2,225 | $33,500 | $133,500 |
| Rate | Monthly repayment | Total interest | Total cost |
|---|---|---|---|
| 6.0% | $4,833 | $39,950 | $289,950 |
| 8.0% | $5,070 | $54,200 | $304,200 |
| 10.0% | $5,312 | $68,700 | $318,700 |
| 12.0% | $5,562 | $83,750 | $333,750 |
The difference between 6% and 10% on a $250,000 truck is approximately $28,750 in extra interest. That's why the lender you choose matters — and why a broker who knows which lender offers the best rate for your specific equipment and profile can save you tens of thousands. Use the truck finance calculator to model your scenario.
1. Use a broker. A broker compares rates across a panel of specialist lenders and knows which lender prices most aggressively for your equipment type. Going direct means accepting one lender's price without knowing if better exists.
2. Have your documents ready. Lenders can only offer their best rates when they can verify your financials quickly. BAS, bank statements, and tax returns (if available) should be up to date and organised before you apply.
3. Consider a deposit. Even 10–20% reduces the lender's risk and can unlock a meaningfully better rate.
4. Finance new or near-new equipment from major brands. Strong resale values mean lower lender risk, which translates to lower rates.
5. Keep your credit clean. Pay existing obligations on time. Avoid new credit applications in the months leading up to your equipment purchase.
Equipment finance rates are influenced by the RBA cash rate, lender competition, and market conditions. Rates adjust gradually — you won't see overnight swings like variable home loan rates. However, rates have moved upward since 2022 in line with RBA cash rate increases. The rates on this page are reviewed and updated quarterly.
Yes. The comparison rate includes fees and charges in addition to the interest rate, giving a more complete picture of the true cost. Always ask your broker or lender for the comparison rate alongside the advertised rate.
Indirectly, yes. A broker negotiates on your behalf by leveraging competition between lenders. Having a strong application (clean credit, solid financials, deposit, premium equipment) gives your broker more leverage. Going direct to a single lender gives you no negotiating position.
Most equipment finance in Australia is at a fixed rate — your repayments stay the same for the entire term. This provides certainty for budgeting. Variable rate equipment finance exists but is less common. In the current interest rate environment (RBA cash rate at 4.35%, June 2026), fixed rates provide predictability against potential further rate movements.
The tables above give you a realistic range. To find out exactly where you sit, talk to a Novara broker. No cost, no obligation, no credit check to get started.
This article provides general information only and does not constitute financial advice. Rates mentioned are indicative and current as of June 2026 — individual circumstances vary. All finance applications are subject to lender criteria and approval. This page is reviewed and updated quarterly. Novara Finance Pty Ltd | AFSL 517192 | ABN 99 687 789 144.