The additional funding will go towards low-cost financing for vulnerable Australians.

The housing boost will be funded by the government increasing the liability cap of the National Housing Finance and Investment Corporation from $3 billion to $3.5 billion.

Prime Minister Scott Morrison said the funding would see more dwellings made available for those who need a home.

"We are proud of our record of supporting Australians into home ownership, and we are focused on (getting) those vulnerable Australians into social and affordable housing," he said.

Since the housing corporation was set up in 2018, about 14,000 homes have been funded under the program, using low-cost loans to community housing providers.

The funding boost will see 2500 homes funded in addition to that.

The $500 million increase in low-cost financing was made following a statutory review of the housing corporation.

The review, which was handed down in August, recommended the corporation be given a mandate to attract more financial backers to provide social housing on a larger scale.

Since the corporation was set up, more than 300,000 people have been helped into owning a home.

Australian Associated Press