The Housing Market Entry Program will be launched on July 1.

It will be a shared equity arrangement between home buyers and a government department.

The government will team with Tasmanian-based lender Bank of us to deliver the scheme, which builds on an earlier version called HomeShare which was supported by the Bendigo and Adelaide Bank.

"If buying your own home always seemed out of reach, or if your life circumstances have changed, the new home ownership scheme might be right for you," Housing Minister Guy Barnett said.

"From July 1, the improved scheme provides a more generous eligibility and expanded assistance to help you build or buy your own home, with as little as a 2 per cent deposit.

"The shared equity scheme will help people achieve home ownership by reducing the costs of buying a home because the costs are shared with the director of housing.

"Assistance will include a maximum contribution of $200,000, or 40 per cent, of the purchase price of a new home or house and land package, and up to a maximum of $150,000, or 30 per cent, for the purchase price of an existing home."

Bank of us chief executive Paul Ranson said the partnership with the government was part of the bank's strategy to be the bank of the community and help more Tasmanians become home owners.

"As a customer-owned bank, we reinvest our profits to benefit our customers and the community," Mr Ranson said.

"The program provides us with another opportunity to give back to our community by helping more Tasmanians get into their own home.

"We were established in 1870 with a sole purpose of providing housing finance to Tasmanians and now, 152 years later, we are in the enviable place of being able to hold true to our original purpose, providing housing finance to Tasmanians through competitive market rates and innovative partnerships."

Mr Barnett said the new program would not affect HomeShare participants.

He said many hundreds of families had entered private home ownership under that scheme.