B&E Personal Banking has announced a .25% rate increase to its variable housing, residential investment and business loans, following the RBA rate increase announcement last week.

The revised variable rate for owner occupied and residential investment housing loans is now 6.87% and compares favourably to the major banks, where the variable rate ranges up to 7.01%.

The rate increase ensures that B&E's most popular home loan, Topline, remains a market leader offering consumers a rate of 6.47% on home loans over $300,000 and 6.57% on home loans over $200,000.

B&E Personal Banking CEO Paul Ranson said that the revised rates would apply from March 15, 2010 for new loans and from April 1, 2010 for existing loans.

"As a member owned financial institution, we continue to be committed to keeping our rates as low as possible and providing value for members as opposed to profit for shareholders.

"With this latest increase, B&E's variable rates remain competitive with the major trading banks and ensures that Tasmanians have a real alternative to access highly competitive home loan products from a financial institution that is Tasmanian owned and operated" Mr Ranson said.