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Avoid the stress and mistakes most homeowners must endure when they buy a home by educating yourself about the options and fees associated with home loans.

First-time buyer home loans: Designed for people who have never financed the purchase of property before, this option allows qualified borrowers to finance more than 100% of the property value. The goal is to make it easier for new buyers to enter the market by wrapping some of the costs of a loan into the loan amount. In addition, there is no deposit requirement for first-time buyer home loans.

Fixed home loans: Buyers who chose this type of home loan will have a fixed interest rate - usually for a period of one to two years. Normally, the interest rate for a fixed loan is slightly higher than the current prime lending rate. This loan protects homeowners from rising interest rates and keeps your repayments the same during the fixed-rate period. But, if rates decline, your rate and payment will not adjust.

Variable home loans: This type of loan begins with one interest rate, agreed upon between you and your lender. Then, if the prime interest rate increases or decreases, the interest rate on your loan will adjust accordingly. Obviously, this option is best in a declining interest rate environment.

Capped home loans: Buyers will only be able to receive the benefits of both the variable and fixed home loans, who meet the required qualification. Use this option caps to negotiate rate for a fixed period of time. you can also take advantage of decreasing interest rates which also safeguards you against raising interest rates. confirm if you can avail this option from your bank.

You should also take into consideration the costs of getting a home loan when you enter the market. Most buyers are not familiar with these costs and are often surprised to see how much they add up.

A minimum deposit amount should be paid to the lender if you are not a first-time buyer to apply for a home loan. The deposit amount is generally 20%, but it can also vary depending on the value of the property for which you are applying a home loan.

Dictated by the Law Society, transfer and registration fees go to the attorneys registering property and the mortgage bond on that property. More expensive properties earn higher fees, also known as conveyancing fees.

Deeds office levies and fees: The Deeds office is responsible for the registration of ownership and other rights regarding immovable property. This is a government office under the jurisdiction of the Department of Land Affairs.

Rates and taxes: Before any property can be transferred into your name, all money owed on the property has to be paid for the full year. If you are the buyer, you will be charged a pro-rated amount for the time that you are there. There will also be a charge for a rates clearance fee certificate.

Remember the price of life insurance and property that are added to the total cost of home ownership. Also, when making a budget for installments, add the costs of moving, water, electrical, and miscellaneous household expenses.