Buying a new home can be a very exciting time – but it can also involve plenty of important decisionmaking about your finances in both the immediate and long-term.

Setting out a budget is a crucial first step toward deciding how much you can borrow with your home loan. Of course, you'll want to consider the cost of the home you want to buy – even if you don't know the exact figure, you can put together a reasonable estimate by researching other properties containing similar features in the same area.

But it is also important to think about the other costs associated with buying a new property. For example, you'll need to think about expenses such as stamp duty, as well as the cost of inspections, legal fees and hiring movers.

According to Glenn Byres, New South Wales executive director of the Property Council of Australia, home[space?]buyers in NSW should be prepared for increases in state-levied fees such as stamp duty and land tax.

Stamp duty, he explained, is set to rise by an average of 9.1 per cent over the next four years, while land tax is expected to increase by 5.7 per cent.

It is important to bear in mind all these costs – and projected increases – as you plan for your property purchase. This will help you make a more accurate home loan application and give you a realistic idea of your expenses.

Of course, the home loan you choose will have a considerable impact on your finances, so you will need to select a product that works well with your lifestyle.

Speak to your broker about your options in terms of various products and services – you may find that depending on your needs, a fixed or variable rate home loan is a better fit.

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.