Mr Morrison, speaking at a western Sydney neighbourhood centre, said he wanted people and not governments to own homes.

"By admission by what Mr Albanese has said, they're looking to make money out of this," he said.

"And as your equity goes up, they're going to keep it, they're going to keep the equity increase that happens in your home.

"Now, I don't have a plan to make money off people buying their own home. Quite the opposite. I want them to own their own home."

Labor's proposed scheme involves a shared equity arrangement where up to 40 per cent of the dwelling value is purchased by the federal government, potentially saving up to $380,000 on a loan.

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The opposition's key housing policy will also include reduced deposit hurdles with as little as 2 per cent, which allows a buyer to avoid lenders' mortgage insurance.

The Grattan Institute, in a submission to the Productivity Commission review of the national housing agreement, has supported shared equity schemes to help people into the property market - proposing a similar model to what Labor announced on Sunday.

The think tank has said governments have spent too long spending on cash incentives that ended up pushing up prices.

Both Western Australia and South Australia have introduced shared equity schemes to help people into the housing market and level the playing field for first homebuyers.