The Bank of Canada’s larger than expected interest rate hike has some people in Waterloo Region concerned about the impacts this will have on their wallets.

The bank raised its key interest rate by 100 basis points to 2.5 per cent. It’s the biggest hike by the bank since 1998.

“Double is absolutely, for sure, a concern,” said Doug Hoyes, a licensed insolvency trustee at Hoyes Michalos.

Hoyes said the increase will make paying off debt even more challenging, especially for those who have variable rate debt, such as a line of credit.

“If you have a line of credit, and you’re paying interest only, as the interest changes your payments are going up. So you’re going to see it immediately,” said Hoyes. “If your interest rate was, let’s say 2 per cent a few months ago, and now it's 4 per cent, that only sounds like 2 per cent, well no, that’s double. That’s twice as much.”

He said unless your paycheque has also gone up, the hike will really impair cash flow and impact many people.

He suggests if you have any debt to pay it now, as it won’t get better by waiting.

“You got to look after yourself. Do what you can to keep your expenses as low as possible. If you can pick up a part-time job, do some sort of side hustle.”

Kitchener realtor Shawn Ramautor said he was also shocked by the 1 per cent increase.

“I think that [the Bank of Canada] has done a lot in a short period of time, and it might be too little too late to come to the table because things have already taken a step back, whether it be the housing market, the stock market, or inflation.”

He said the rate hike may not cool the housing market as the bank intended.

“With the increase in the interest rate, that same house that was costing you a million dollars in February, basically you’re payments are the same now if you’re buying something that’s significantly cheaper whether that be 800 thousand, because of the interest rate hike.”

However, Ramautor said it’s not all “gloom and doom.” He said the increase could bring opportunities for the right home buyer.

He suggests taking a look now if you're serious about buying a house before the market shifts back to a more competitive market.