The Bank of Canada raised its key interest rate to 1 percent, the highest level in 20 years, and that could have significant financial implications for many Canadians. Nancy Snedden, President and Licensed Insolvency Administrator at BDO Canada, says record inflation is on the rise, with the Bank of Canada saying inflation could be close to 6%, which is “unprecedented”. He also says that the key interest rate could reach up to two percent before everything is said and done. He says raising interest rates will mostly affect those with variable-rate debt, such as home equity lines of credit, regular credit lines and variable-rate mortgages. He says many of these people will see an increase in what they pay. He cited information from Trans Union, saying that the average HELOC at the moment is $ 142,000. People with an interest rate of 2.7 percent would pay around $ 650 in this credit line, this rate increase will increase the number to $ 724 and even higher with further increases. Snedden says it is a significant increase because many Canadians are “on the verge of” whether or not they can afford to live.