Inflation is on a rampage. The Bank of Canada is raising interest rates to combat that and is warning mortgage payments could be up to 45% higher for some borrowers by 2025.

Ian Penney, a licensed insolvency trustee and president of Janes and Noseworthy, says the higher cost of borrowing is not only going to affect mortgages but all credit products.

The bottom line is according to Penney, anyone on a tight budget is going to find that it gets tighter.

As for switching a mortgage from a variable rate to a fixed one, Penney says that depends on a person’s circumstances. He says it comes down to affordability because if you pay a fixed rate, you may more but you will know what your payments are going to be.