With an expected increase of Canada's overnight lending rate in 2014, first-time homebuyers will want to take notice of the escalating cost of borrowing when it comes to the purchase of a home.

For the most part, the Canadian overnight rate has remained at one per cent since September 2010 to counter world markets affected by recession. Some buyers may be expecting those low interest rates to last for a while. In a report released by BMO, one-third of firsttime buyers polled expect interest rates to stay the same over the next five years.

In its 2013 Spring Survey, the Canadian Association of Accredited Mortgage Professionals (CAAMP) found 83 per cent of respondents are comfortable with their loan to value ratio on their primary residence.

When it comes to debt, first-time homebuyers show the most concern at 65 per cent compared to 23 per cent of other homebuyers. Canadians seem to show a lot of concern for their neighbours as well with 41 per cent replying they were somewhat concerned with debt other Canadians hold down from 58 per cent in 2012.