Anthony Albanese has brushed off suggestions a scheme designed to help more young Australians buy a home could drive up property prices.

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Labor's five per cent deposit scheme took effect on Wednesday, allowing eligible first-home buyers to get a mortgage with a much smaller deposit and avoid paying for lenders' mortgage insurance.

Some analysts argue the measure will add demand to an already-hot property market.

The Insurance Council has previously claimed it could push up the cost of a home by as much as 10 per cent in the first year alone.

Treasury modelling suggests the impact will be much smaller at just 0.5 per cent over six years.

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