“When the Banks Say No, We Say Yes!” Decoding Mortgage Advertisement Appeals In a Decoupled Housing Market

Home prices in Toronto are decoupled from incomes, with the average home now costing approximately ten times more than the average household income. Mortgage advertisements are an important communication vehicle to study, particularly in a decoupled housing market. Determining the appeals advertisers use can indicate whether consumers are being guided and informed of mortgage product options or if they are being persuaded by emotional appeals to make a major financial decision. This major research paper uses content analysis to examine advertising tactics used by mortgage lenders and brokers on Facebook and Instagram to appeal to home buyers in a decoupled market. The findings focus on three specific elements extracted from the advertisements, including the display of an interest rate, the call to action that is used, and whether the fine print is shown on the ad. These elements will determine which institutions use more persuasive or informational appeals.