Chinese authorities on Monday decided to relax mortgage rules for second home buyers to address demand for improved housing and lift the sagging housing market.

Down payment levels for second home buyers in general will be lowered to 40 percent from the current 60 to 70 percent, said a statement jointly published by the central bank, Ministry of Housing and Urban-Rural Development, and China Banking Regulatory Commission.

Down payments for second home buyers using public housing funds will be cut to 30 percent from the current 60 percent.

The moves are meant to "support residents' demand to improve housing conditions and promote the steady and healthy development of the housing market," said the statement.