Mortgage Advertising: What Works in 2026

Mortgage advertising costs $50-200 per lead through paid channels. The most effective ads focus on specific borrower pain points rather than generic rate promotions. Google Ads converts best for ready-to-apply borrowers while Facebook works better for awareness and nurturing. Here’s what actually works.

Why Most Mortgage Ads Fail to Generate Leads

Walk into any mortgage office and you’ll see the same ads everyone runs. “Low rates!” “Fast closing!” “Call today!” These messages blend into noise. Borrowers have seen them thousands of times.

Effective mortgage advertising stands out by being specific. Instead of “great rates,” try “VA loans with zero down payment for veterans.” Instead of “fast approval,” try “Close in 21 days or we pay your first month’s payment.”

Specificity beats generic promises every time.

Best Mortgage Advertising Channels That Convert

Google Ads for Mortgage Lead Generation

Google Ads puts you in front of borrowers actively searching for mortgages. They’re further down the funnel than social media users.

High-intent keywords to target:

• “mortgage lender near me”
• “apply for home loan”
• “pre-approval mortgage”
• “FHA loan requirements”

Keywords to avoid:

• “mortgage calculator” (information seekers, not buyers)
• “mortgage rates today” (rate shoppers who won’t convert)
• “what is a mortgage” (too early in the funnel)

Budget guidance:

• Start with $500-1,000/month
• Expect $50-100 per lead initially
• Optimize toward $30-50 per lead over 3-6 months

Facebook and Instagram Mortgage Ads

Social media works differently. Users aren’t searching for mortgages - you’re interrupting their scroll. Your ad needs to earn attention.

What works on Facebook:

• Life event targeting (engaged, new job, recently moved)
• Lead forms that don’t send users off-platform
• Video content showing real people, not stock photos
• Testimonials from actual clients

Ad creative that converts:

• Before/after stories (“How the Johnsons bought their first home”)
• Myth-busting (“You don’t need 20% down - here’s why”)
• Calculator-style hooks (“See what you qualify for in 60 seconds”)

Direct Mail for Mortgage Marketing

Direct mail isn’t dead. It just needs to be targeted.

Mortgage marketing postcards work when:

• Sent to renters in appreciating markets
• Targeted to homeowners with high-rate mortgages
• Timed around rate drops
• Personalized with actual numbers

Example postcard copy: “123 Main St homeowner: Your neighbors are refinancing and saving $347/month. Your home value increased 12% last year. Want to know your options? Call [number]”

Specific beats generic. Always.

Email Marketing for Mortgage Leads

Email nurturing converts cold leads into applications over time.

Email sequences that work:

1. Welcome email with rate quote tool
2. Educational content (3-5 emails over 2 weeks)
3. Social proof (testimonials, recent closings)
4. Direct call-to-action with deadline

Subject lines that get opened:

• “[First name], rates dropped again this week”
• “Your neighbor just locked at 6.25%”
• “The $347/month mistake most buyers make”
• “Unlock the secrets to successful mortgage lead generation with our expert tips”
• “Maximize your mortgage ad campaign ROI with our proven strategies”

Mortgage Advertising Compliance Rules

TILA and Regulation Z Advertising Requirements

If you advertise rates or payments, you must include:

• APR (not just the rate)
• Loan term
• Down payment amount
• Whether the rate is fixed or adjustable

Example compliant ad: “30-year fixed at 6.5% APR. $200,000 loan with 20% down. Monthly payment $1,264 P&I.”

Fair Housing Compliance

Never imply preference for:

• Race, color, religion, national origin
• Sex, familial status, disability
• Any protected class

Even well-intentioned ads can violate fair housing. “Perfect for young families” could be seen as discriminating against older buyers or people without children.

State-Specific Rules

Each state has licensing requirements. Your ads must include:

• NMLS number
• Company license information
• Required disclosures (varies by state)

Check with your compliance team before running any new ad creative.

Mortgage Ad Examples That Generate Leads

Google Search Ad Example for Mortgages

Headline: VA Home Loans | Zero Down Payment | Pre-Approve in 24 Hours Description: Serving veterans in [City] since 2010. Get pre-approved online today. NMLS #123456

Facebook Ad Example

Image: Real photo of family getting keys Copy: “The Garcias thought they needed 20% down. Turns out they qualified with just 3.5%. They closed on their first home last month. Want to know what you qualify for? Take our 60-second quiz.” CTA: “Check My Options”

Direct Mail Example

Headline: “Your home is worth $47,000 more than when you bought it” Body: Based on recent sales on your street, your home at [address] is now worth approximately $[value]. Many of your neighbors are using this equity to consolidate debt, make improvements or lower their rate. Want to know your options? Call [name] at [number] for a free consultation. No obligation.

Tracking Your Mortgage Ad Campaign ROI

You can’t improve what you don’t measure.

Metrics to track:

• Cost per lead (CPL)
• Cost per application
• Cost per funded loan
• Return on ad spend (ROAS)

Simple tracking setup:

1. Use unique phone numbers for each channel
2. Set up Google Analytics on your website
3. Track leads in your CRM by source
4. Calculate cost per funded loan monthly

Benchmark numbers:

Channel	Typical CPL	Conversion Rate
Google Ads	$50-100	5-10%
Facebook	$30-75	3-8%
Direct Mail	$20-50	1-3%
Email	$5-20	2-5%

How to Start Advertising Your Mortgage Business

Don’t try everything at once. Pick one channel and master it.

If you have limited budget ($500-1,000/month): Start with Google Ads targeting high-intent local keywords. Focus on pre-approval and application searches in your market.

If you have moderate budget ($2,000-5,000/month): Add Facebook retargeting to your Google Ads. Show ads to people who visited your site but didn’t apply.

If you have larger budget ($10,000+/month): Layer in direct mail campaigns and test video content. Build a full-funnel approach from awareness to application.

Frequently Asked Questions

How much should I spend on mortgage advertising?

Most successful loan officers spend 10-15% of commission income on marketing. If you close $10,000/month in commissions, budget $1,000-1,500 for advertising.

Are Facebook ads worth it for mortgage brokers?

Yes, but they work differently than Google. Use Facebook for awareness and retargeting rather than direct-response ads to cold audiences.

What’s the best mortgage advertising platform?

Google Ads typically delivers highest-intent leads. Facebook offers lower costs but requires more nurturing. Test both and measure your results.

How do I stay compliant with mortgage ads?

Include required disclosures (APR, terms, NMLS), avoid fair housing violations and get compliance review before running new creative.

Should I hire a marketing agency for mortgage advertising?

Consider it once you’re spending $5,000+/month. Below that, the agency fee often exceeds your ad budget. Learn the basics yourself first.

Next Steps

Pick one advertising channel that matches your budget and audience. Set up tracking before spending a dollar. Test small, measure results and scale what works.

For more on growing your mortgage business, check out our guides on mortgage lead generation and SEO for mortgage brokers.