More than half of Canadians would exceed their budget to buy a home. Would you?

Given the size of the financial investment, house hunting should be a rational, logic driven process.  In reality though, buying a home is an emotional rollercoaster that puts many Canadians in financial hot water. A new TD home buying survey reveals that even though some markets across the country are cooling, 60 per cent of respondents would be willing to exceed their budget, with more than half (56 per cent) saying they would go over their budget by up to $50,000 - proving that emotions are playing too big of a role in the home buying process.

"$50,000 might lose its sticker-shock compared to the overall price of a house, but it's still a substantial amount of money that could be used to meet other financial needs," says Roy D'Souza, Associate Vice President, Real Estate Secured Lending at TD Canada Trust. "Whether you're moving into your first home or upsizing to something bigger, keeping your feelings in check is critical to making objective decisions that match your short- and long-term financial plans."

TD's survey also shows that Canadians are financially overconfident when it comes to purchasing a home. More than half of homebuyers (57 per cent) say they are confident about what they can afford, yet 97 per cent of homeowners admit they wished they had factored in their other financial obligations when determining how much mortgage they could really afford – including property taxes and home maintenance costs (54 per cent), and overall lifestyle expenses (33 per cent).

To help inject needed financial reality into the home buying process, TD offers its Mortgage Affordability Calculator, which uses financial information provided by the potential buyer to help them understand how much home they may be able to afford after monthly expenses, debt payments and savings are accounted for. The Calculator offers a high, medium and low range of affordability options to assist buyers in finding a home that may comfortably fit their budget and lifestyle. It also links to active real estate listings that match the user’s budget and desired neighbourhood from REALTOR.ca and connects them to expert REALTORS®.

For those dreaming of buying a home, click here for more tips and advice on making the right move.