The average Canadian is now paying $144 a month more in mortgage if they have a variable interest rate.

That amount will only balloon as the Bank of Canada promises more rate hikes in the coming months to try to keep inflation in check.

In fact, if the Bank of Canada continues to push up rates as forecasted, the average Canadian could be paying a total of $300 or more extra in monthly mortgage payments if they're on a variable rate.

"Oh, yes, we've been fielding a lot of questions today," said Kelowna mortgage broker Aaron Marsh of Rampone Marsh Mortgages.

"People are inquiring about mortgage interest rates and asking if they should lock in to a fixed-rate mortgage."

Marsh's advice differs on a case by case basis and depends on people's risk tolerance and if they plan to sell their home soon.

Today the Bank of Canada raised its key overnight interest rate half a percent from 0.5 to 1%, the largest one-time hike since 2000.

That means the bank's prime lending rate followed suit and went from 2.7 to 3.2%

On March 13, the bank's prime jumped from 2.45 to 2.7%.

The best variable mortgage interest rate Canadians can get from lenders is prime less 1.1.

Therefore, the variable sits at 2.1% today, which is the 3.2% minus 1.1.

At its lowest the variable was 1.35%.

"The rule of thumb is for each 0.25% increase in the prime, your mortgage will go up $12 per month per $100,000 of mortgage," explained Marsh.

"The average mortgage is about $400,000, so four times $36 (based on three $12 hikes due to 0.75 increase in prime) is $144 more a month in mortgage payment."

The best five-year fixed rate mortgage currently sits at 3.89%, so even the higher 2.1% variable is better right now.

"I can't tell clients when to lock in, but if they are comfortable with the variable right now it is lower than the fixed," said Marsh.

"Interest rates have been so low for so long that Canadians have gotten used to cheap money," said Marsh.

"Yes, there's been these increases in the past 45 days, but they are moderate and interest rates are still very attractive."

Mortgage interest rates are still historically low.

To put it in perspective they were at an all-time high of 21% in 1981, 14% in 1990, 11% in 1995 and 7% in 2000.

"Anyone that's looking to buy a house right now was probably pre-approved for a mortgage by the bank at the lower interest rate for six to eight weeks," said ReMax Kelowna realtor Colin Krieg.

"So the immediate effect may be short-term pressure to buy while the rate is lower. But, absolutely, in the medium-and-longer term higher rates will have an impact on affordability and home buying. Buyers were already getting discouraged by high prices and bidding wars, so higher interest rates may give them pause and the market might plateau."

Krieg sees conservative buyers opting for fixed mortgage rates and those willing to take more risk continue to choose the more volatile variable.

At ReMax Western Canada head office in Kelowna, executive vice-president Elton Ash is predicting more potential home buyers getting knocked out of the market by loftier interest rates.

"However, in the longer term, it might be good news for buyers because house prices will settle down," said Ash.

"Demand is already slacking because buyers have hit the point where they don't want to pay more. The real issue is affordability and lack of inventory. So, I don't see interest rates haveing a huge effect here."

In the past year, prices have been on a tear in Kelowna, increasing 30% or more to the point where a typical single-family home sells for $1.1 million, a townhouse $758,000 and a condominium $557,000.