Google Ads can be the fastest path to mortgage leads — or the fastest way to burn through $5,000 with nothing to show for it. The difference comes down to setup, targeting, and what happens after someone clicks. This guide walks you through the entire process, from campaign creation to conversion tracking.
Why Google Ads Works for Mortgage
Unlike social media ads where you're interrupting someone's scroll, Google Ads captures intent. When someone searches "mortgage lender near me" or "best FHA rates in Denver," they're actively looking for what you offer. That intent is why Google Ads typically converts 2–3x higher than Facebook for mortgage.
The downside: it's expensive. Mortgage keywords can cost $15–$50+ per click. You can't afford to waste a single click on bad targeting or a weak landing page.
Step 1: Campaign Structure
Start with a Search campaign — not Display, not Performance Max. Search targets people actively typing queries. You want tight control early on.
Create separate ad groups for each loan type or intent:
- Purchase intent — "mortgage lender [city]," "home loan [city]," "buy a house [city]"
- Refinance intent — "refinance mortgage [city]," "lower mortgage payment," "cash out refinance"
- FHA/VA specific — "FHA loan [city]," "VA mortgage lender," "zero down mortgage"
- First-time buyers — "first time home buyer [city]," "down payment assistance [state]"
Keeping these separate lets you write specific ad copy for each group and control budgets by intent type.
Step 2: Keyword Strategy
Start with phrase match and exact match only. Broad match in mortgage will drain your budget on irrelevant searches like "mortgage calculator" or "what is a mortgage." You want buyers, not browsers.
Negative Keywords Are Non-Negotiable
Add these on day one: calculator, definition, what is, jobs, salary, license, exam, courses, complaints, reviews (unless you're running a review campaign). Check your search terms report weekly and add negatives aggressively.
Focus on local keywords. "Mortgage lender" is too broad and too expensive. "Mortgage lender in Scottsdale AZ" is specific, cheaper, and more likely to convert because you're matching local intent.
Step 3: Ad Copy That Converts
Your ad needs to do three things: match the search intent, differentiate you from the ten other ads on the page, and give a clear reason to click.
What works in mortgage ad copy:
- Specificity — "Close in 21 Days" beats "Fast Closings"
- Local proof — "500+ Families Helped in [City]" builds trust
- Clear CTA — "Get Pre-Approved in Minutes" or "Check Today's Rates"
- Address objections — "No Obligation" or "Free Consultation" reduces friction
Use all available ad extensions: sitelinks (pre-approval, loan programs, reviews, contact), callout extensions (Licensed in [State], Available Weekends, No Hidden Fees), and call extensions for mobile.
Step 4: Landing Pages (Not Your Homepage)
This is where most LOs fail. They spend $30/click sending traffic to their homepage — a page with navigation, multiple messages, and zero urgency. Your conversion rate drops to 2–3%.
A dedicated mortgage landing page with a single CTA, no navigation, social proof, and a short form can convert at 10–15%. At $30/click, that's the difference between $300/lead and $200/lead.
Every dollar you spend improving your landing page conversion rate is worth more than every dollar you spend on more clicks. Optimize the page before scaling the budget.
Step 5: Conversion Tracking
If you're not tracking conversions, you're flying blind. Set up conversion tracking for:
- Form submissions — The primary conversion
- Phone calls — Use Google's call tracking or a dedicated tracking number
- Click-to-call on mobile — Often 40%+ of mortgage leads come by phone
Once you have conversion data, Google can optimize toward the keywords and audiences most likely to convert. Without it, you're just optimizing for clicks — which means nothing if those clicks don't become applications.
Step 6: Budget and Bidding
Start with $1,500–$3,000/month to get enough data. At $25–$40/click, that's 40–120 clicks per month. With a 10% conversion rate, you're looking at 4–12 leads.
Use Manual CPC or Maximize Conversions bidding to start. Don't use Target CPA until you have at least 30 conversions per month — Google's algorithm needs data to optimize effectively.
The Break-Even Math
If your average commission is $3,500 and you close 1 in 10 leads, each lead is worth $350. As long as your cost per lead stays below $350, you're profitable. Most well-optimized mortgage campaigns achieve $80–$200 per lead.
Step 7: Speed to Lead
Here's where everything connects back to your systems. A Google Ads lead that sits in your inbox for two hours is already talking to your competitor. You need automated speed-to-lead workflows: instant text confirmation, immediate follow-up call, and a drip sequence if you don't connect on the first try.
Studies consistently show that responding within 5 minutes increases conversion by 8x compared to responding within an hour. Your CRM should trigger this automatically the moment a lead submits a form.
Common Mistakes to Avoid
- Broad match keywords — Will eat your budget on irrelevant searches
- Sending traffic to your homepage — Build dedicated landing pages
- No negative keywords — Review search terms weekly
- Ignoring mobile — 60%+ of mortgage searches happen on phones
- No follow-up system — The ad is just the beginning; the lead generation system behind it determines ROI
Google Ads isn't a set-it-and-forget-it channel. It requires weekly optimization, constant testing, and a conversion system behind it. But when it's dialed in, it's one of the most predictable and scalable lead sources available to loan officers.