The Steinbach Credit Union is just one financial institution who is increasing their interest rates after the Bank of Canada announcement on Wednesday.

Chief Executive Officer Glenn Friesen says interest rates will be increasing a quarter of a percent, from 2.95% on a variable rate mortgage to 3.2%. He notes on a $100,000 mortgage an individual could expect to pay an additional $250 per year in interest, in addition to the same interest rate increase seen earlier this summer.

"It's probably okay for it to go up a little bit, but the Bank of Canada needs to be careful it doesn't go up too quickly because you add $250, and you add $250, and you add $250, eventually it does become something that's a problem."

Friesen says, historically, the highest interest rates were in 1980 at almost 20%, noting the average would be somewhere in the 6-7% range.

"It's been lower for quite a while since 2008 it's dropped significantly and we've had the lowest we've had in the last number of years."

He notes the Bank of Canada is also talking about a third increase in December, which would mean another $250 in interest rates for a $100,000 mortgage.

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