While the rising interest rate puts more pressure on borrowers, seniors may see their annual income rising.

Many financial institutions settled at 3.7 percent for the Prime Borrowing Rate Wednesday in response to the Bank of Canada raising its benchmark interest rate by 25 basis points. Access Credit Union (ACU), like many major banking institutions, raised its interest rate to 3.7 percent on open variable mortgages.

However, ACU President and CEO Larry Davey says people with savings will see more earnings on their deposits.

"This is especially true of seniors who have had to endure rates dropping considerably. They may have been counting on a certain amount of income per year based on their deposits, and if rates drop so does that income."

A decade of low rates has led to a generation who've never seen anything but single-digit interest rates, Davey says. For those with a mortgage, Davey says many may consider locking in a fixed mortgage as interest rates are expected to continue to gradually rise.

Davey notes the increase may also slow borrowing, compounded by government stipulations lending institutions must qualify customers at two percent higher than the rate they're actually paying. "It's had a much stronger effect in Toronto and Vancouver, but there is still some effect in our area."

"We're in an area where people are relatively cautious, they're not normally trying to go to the extent they could... most people come in and say "here's what I'd like to pay, what does that qualify me for?'" Yet, he says many may still potentially have less of a mortgage available to them.

Wednesday's rate hike is the fourth increase since last summer.