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.