The B&E cut will apply to home, residential investment and business loans.

B&E Personal Banking chief executive Paul Ranson said that the revised rates would apply from April 17 for new loans and from May 1 for existing loans.

Its revised variable rate for owner occupied and residential investment housing loans is now 5.67 per cent and compares to the major banks where the variable rate ranges from 5.64 per cent to 5.81 per cent.

Mr Ranson said the rate cut ensured that B&E's most popular home loan, Topline, remained a market leader offering consumers a rate of 5.09 per cent on home loans over $250,000 and 5.14 per cent on home loans over $150,000.

"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 cut, B&E's variable rates remain very 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.

B&E has more than $500 million in assets, 40,000 clients, nine branches statewide and 90 employees.