The Northern Territory Government has partnered with lender TIO to allow people to borrow up to $750,000 dollars to buy a home without paying a deposit or mortgage insurance.

The My New Home scheme is one of two new programs unveiled in the lead-up to next month's election to help people buy property.

The other, Homestart Extra, allows low-income earners to borrow more money from the Government in exchange for a share of equity in their property.

Treasurer Delia Lawrie says the schemes are designed to reduce rental pressure in the Top End and increase the number of properties on the market.

"These products are deliberately designed to be stimulus," she said.

"My New Home is for new construction, for buildings that haven't been occupied or sold."

Ms Lawrie says it will help people buy a home if they can't save for a deposit.

"This will give them a way through to home ownership," she said.

"This is a product that backs the Territorian to benefit out of the strong Territory economy."

Opposition spokesman John Elferink says a lack of land releases is what has kept people out of the housing market.

"Now we have a Labor Government pretending that they have the solution when in actual fact they were the problem," he said.

"It is a scheme designed not to get people into the housing market, it is a scheme designed to get a Labor government elected."

TIO says it expects a 15 per cent increase in construction loans linked to the schemes.

Chief executive officer Richard Harding says default rates in the Territory are very low and he does not expect that to change because of the new programs.

Master Builders Association executive director Graeme Kemp says the new programs will help developers by giving people easier access to housing finance.

"We have got a market in the Territory of around about 1000, give or take, new starts every year," he said.

"We have currently got a log-jam where people can't get off the rental merry-go-round.

"What this is going to do is free up that log-jam."

The Real Estate Institute of the Northern Territory has called on the Government to release more land to make its new scheme work.

Chief executive officer Quentin Kilian says the initiative will encourage people to get into the housing market.

"The Government then must play its role and ensure that there is adequate supply," he said.

"We are not just talking about greenfields development; keep it going further out.

"We need to come back and also look at inner city developments, and say to developers, let's cut the red tape, let's allow for inner-city development."

