PPoR / IP / Bank / Centrelink – confused!

Quick summary:

* Pensioner
* Have 50% deposit
* Bank will lend 50% for PPoR
* Bank will lend 25% for IP

The problem:

1. The 25% reduction for an IP – means I can’t purchase one. Even though…

2. I’m paying cheap rent. So buying either PPoR or IP, makes me financially worse off. (Once my cash goes into a PPoR, I’m no longer earning interest.) But with incoming rent from an IP would cover repayments AND replace some of that lost interest. So although I’d be financially better off with an IP – the bank wants me to get a PPoR!

My questions are:

a. If I get a PPoR (to get the full 50% loan that’s required) – can I rent it as an IP anyway – or will the bank prevent me somehow?

b. Does anyone know where I stand with Centrelink!? The property would be a PPoR, but I’d be declaring it’s incoming rent to them – and – renting myself too. I assume leaving it as a PPoR means I cannot claim rent assistance. Can I just waive rent assistance to keep it as an IP, and only declare the rental income? Or will Centrelink force me to make it into an IP and to take rent assistance, LOL!

c. If I must change it to an IP – how do I do that and with who – since the loan was originally for a PPoR!?

d. What kind of costs are involved in changing a PPoR to an IP?

Thanks for reading.