A vast majority of Canadians wouldn't enter a bidding war to close a deal on a new home despite a hot real estate market, a new study says.

Only 25 per cent of people surveyed would willingly enter a bidding war on a home they wanted to buy, while 75 per cent would refuse, the web-based survey by Leger Marketing for BMO Bank of Montreal released Thursday found.

For those buyers willing to put up a fight, half would pay up to 10 per cent more than the asking price and one-quarter would go as high as 20 per cent to close a deal, according to the survey of 1,000 house and condo owners last month.

Buyers in Alberta, the Prairies and Ontario were more likely to enter a bidding war on a property, the survey found.

About 32 per cent of respondents in Saskatchewan and Manitoba were willing to bid against others on a home – the highest level in the country.

People in Quebec and Atlantic Canada were the least likely to join a bidding war at 87 per cent and 81 per cent respectively.

Men were also more willing than women to bid as much as 20 per cent more for a property.

Only about one-in-five women would bid higher than the asking price, the survey found.

"It's important that Canadians keep their emotions in check when looking for the home of their dreams to ensure they do not over-extend themselves," BMO Bank of Montreal's Laura Parsons said in a release.

Total housing costs shouldn't consume more than one-third of household income, she said.

Average housing prices across Canada are rising "modestly" with the exception of Toronto and Vancouver, the bank said.

The average home sale price in Toronto is $504,117, while in Vancouver the average selling price sits at $761,742. The national average selling price for a home is $369,677.

House prices in Toronto rose 11 per cent in the last year, while Vancouver's average price dropped by three per cent, the bank said.

"But excluding those two centres, which account for a little more than a quarter of national activity, prices and sales in the rest of the country are rising modestly," said Doug Porter, deputy chief economist for BMO Capital Markets.

"For most cities, the market is well balanced and generally moderating after strong gains in recent years," he said.

The survey is considered accurate within 3.1 percentage points, 19 times out of 20, although regional breakdowns are less accurate.

The survey was conducted March 19 to March 22.