Borrowing money in Canada just became more expensive after the Bank of Canada raised a key interest rate by a quarter of one per cent for the second time since July.
 
It's the biggest jump in lending rates since the economic crash of 2009.
 
"I think it's mostly a good news story," said Scot Hadden, President of Chinook Financial. "The Bank of Canada has the confidence in our economy and where it's at that they finally feel they can increase the interest rates."
 
The announcement by the central bank caused the Canadian Dollar to jump by more than two per cent to 83.2 cents US on Wednesday.
 
"People think when interest rates go up, it's bad because it costs more on variable rate loans, but people forget about the folks that have money in investments and deposits," he elaborated. "A lot of seniors for example, they live on those investments so a higher interest rate for them means more investment income for them, which is important."
 
The big banks quickly followed the latest rate hike with a jump in their prime rate to 3.2 per cent and Hadden admits mortgage rates could be next.
 
"In a historical trend, a 40 year graph, they're still really low," he told 99.5 Drum FM. "But if you owe money and you're borrowing money you need to be mindful how much will my payments change; do I have to change my lifestyle because the interest rates went up?"
 
Hadden thinks home owners should consider a fixed rate mortage.
 

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