A five per cent deposit first-home buyers scheme is expected to open doors for young families entering the housing market, but concerns remain that it could push prices even higher.

The federal government's new regime, a signature campaign promise, came into effect on Wednesday, giving eligible Australians access to five per cent home deposits backed by the taxpayer to take out home loans.

It will bring forward purchasing decisions for many first-home buyers, who will be able to vault over the deposit hurdle without paying expensive mortgage insurance.

Labor Housing Minister Clare O'Neil said the scheme will go a long way toward remedying decades of government neglect of housing affordability.

"This is about reshaping those opportunities which are being faced by the younger generation

See Full Page