Announced by Prime Minister Scott Morrison on Sunday, the plan will lower the mandatory home loan deposit from 20 per cent to just five per cent.

Within a few hours, opposition leader Bill Shorten had declared Labor's support for the plan also.

"Home loan affordability is one of the things that's talked about a lot, but there hasn't been much done about it from either side of government," said Tony Brasier, managing director of PRDNationwide.

The scheme will be capped at 10,000 loans each year and will be accessible by couples that earn under $200,000, and individuals earning less than $125,000.

While Mr Brasier said it was too early to tell whether the majority of the new homeowners will be concentrated in the city or the country, he conceded that the growth can only be positive.

"We won't know how it'll all turn out for probably five to 10 years, [but] another 10,000 in the market will have a positive impact," he said.

Median house prices also preclude, "you can get a lot more for a $1million in the Riverina than you can in the big cities".

Essentially, the initiative will mean that up to 15 per cent of the home loan will be guaranteed by the government.

Mr Brasier did admit that this scheme could prove problematic for short-term investments.

"What if the prices keep going down, as they have been? If the homeowner only has 5 per cent equity in their house, they could end up going down to negative equity if the prices fall," he said.

"Historically though, prices rise again over five to 10 years, so if they take a long-term view, it'll work out. It'll only be a problem for anyone who's looking to buy a house and then [immediately] turn around and sell it."