Westpac Banking's (ASX:WBC, NZE:WBC) Westpac NZ unit slashed home loan rates, offering customers a special rate of 4.95% per annum across loans of one-year, two-year, and three-year terms, effective Thursday, according to a Wednesday statement from the bank.

The lender said most variable business lending rates are being reduced, in line with the central bank's cut of 25 basis points to the official cash rate.

It also cut the variable home lending rates by 0.15% per annum, with the rates having dropped by over 2% per annum since July 2024.

It lowered its mortgage serviceability rate to 6.85% from 7%.

The lender's shares were up almost 1% in New Zealand in recent Thursday trade.