Certain qualified cities in China are now allowed to decide whether to maintain, lower or scrap the floor on mortgage rates for first-home buyers till the end of this year.

The latest measure will help local governments better adopt city-specific policies to promote the stable and sound development of the real estate market, the People's Bank of China and China Banking and Insurance Regulatory Commission said Thursday in a joint statement.

Within the scope of each city's policies, banks and buyers will be allowed to negotiate to determine the specific interest rate level of newly-issued mortgages for buyers of their first homes.

This will help reduce expenses on interest payments and better support the inelastic demand for housing, said the statement.

(Cover photo via CFP)