The Coalition’s new First Home Loan Deposit Scheme seeks to tackle a big concern. Home ownership is falling fast in Australia, especially among the young and poor. Less than half of 25 to 34-year-olds own their home today. Even fewer poorer Australians own their homes.

The scheme would lend new buyers up to 15 per cent of the purchase price, provided they’ve saved at least 5 per cent already. It would be available to first homebuyers with an income of up to $125,000 or a couple with $200,000, helping them avoid paying lenders’ mortgage insurance. Banks usually demand this from purchasers with less than a 20 per cent deposit, costing them around $10,000.

The Coalition’s plan addresses a big hurdle to home ownership: the time it takes to save a deposit. In the early 1990s it took six years on the average income to save a 20 per cent deposit on the average home. Today it’s 10 years.

Scott Morrison launching the Liberal Party's campaign Credit:AFR

The scheme would increase home ownership and prices a little. Some Australians saving for their first home could buy earlier, adding to demand. Others could pay a little more if they don’t have to front for lenders’ mortgage insurance on top.