"Emotions are playing too big of a role in the home buying process and are tempting buyers to spend more than they can afford," says Roy D'Souza, Associate Vice President, Real Estate Secured Lending at TD Canada Trust.
A report from TD reveals that buyers are financially over-confident when buying a home with 57% saying they know what they can afford but a huge 97% saying they wish they’d factored in costs other than the mortgage when determining their budget.
Often they forget property taxes, maintenance costs and lifestyle expenses and D’Souza says this puts them under financial stress, especially when their circumstances change unexpectedly.
More than half of those surveyed (58%) say they're worried that a rise in interest rates will affect their ability to afford a home, while 43% worry about job stability and other personal issues.
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Sixty percent of Canadian homebuyers would exceed their budget to buy a home with more than half willing to smash it by $50K!