The Globe and Mail reports in its Friday, May 29, edition that homeowners are increasingly opting for private mortgage lenders as higher interest rates and declining home values make it difficult to qualify for traditional loans. The Globe's Salmaan Farooqui writes that private mortgages are alternative loans for those who don't meet the requirements of banks and other institutions. The loans come at a higher cost, with rates for three-year fixed mortgages exceeding 6 per cent at some private lenders compared with about 4 per cent for traditional mortgages. High borrowing costs lead homeowners to initially choose private mortgages for a year, but with falling home values and rising rates, many are now opting for three-year terms to protect against market volatility. Glasslake Funding's Jake Bannister said the share of customers who renew with a private lender instead of qualifying for a traditional mortgage is increasing. He said about three quarters of them are renewing, up from 50 per cent in the past. Some borrowers in major Canadian cities are facing decreasing home values, leading to situations where properties are worth less than the loan at renewal. Homeowners may need to pay thousands to cover the difference.