A balance transfer moves high-interest credit card debt (typically 19.99–22.99%) to a card with a lower rate or a promotional 0% offer. Canadians carrying a $5,000 balance at 19.99% pay ~$1,000/year in interest — the right balance transfer card can cut that dramatically.
How Balance Transfers Work in Canada
- Apply for a low-rate or promotional card
- Request a balance transfer during or shortly after application — most issuers require it within 30–90 days of account opening
- A balance transfer fee of 1–3% typically applies (some cards waive it)
- Pay down the balance before any promotional period ends — remaining balances revert to the standard rate
Promotional Rate vs. Ongoing Low Rate
- Promotional 0% cards: Great if you can pay off the full balance within the intro window (6–12 months). Miss the deadline and rates spike.
- Ongoing low-rate cards: Rates of 8.99–12.99% all the time — safer if you need longer to pay off the balance. Annual fees are usually $20–$40.
Best Promotional Balance Transfer Cards
| Card | Promo Rate | Promo Period | Transfer Fee | Annual Fee |
|---|---|---|---|---|
| MBNA True Line Mastercard | 0% | 12 months | 3% | $0 |
| MBNA True Line Gold Mastercard | 1.99% | 12 months | 1% | $39 |
| Scotiabank Value Visa | 0% | 6 months | 1% | $29 |
| CIBC Select Visa | 0% | 10 months | 1% | $29 |
Best Ongoing Low-Rate Cards
| Card | Ongoing Rate | Annual Fee | Best For |
|---|---|---|---|
| MBNA True Line Gold Mastercard | 8.99% | $39 | Lowest ongoing rate in Canada |
| Scotiabank Value Visa | 12.99% | $29 | Scotia banking clients |
| CIBC Select Visa | 10.99% | $29 | CIBC banking clients |
| BMO Preferred Rate Mastercard | 12.99% | $20 | BMO clients; low annual fee |
| TD Emerald Flex Rate Visa | Prime + 4.50% | $25 | Variable rate; benefits from Bank of Canada cuts |
| National Bank Syncro Mastercard | Prime + 4% | $35 | Quebec & NB banking clients |
| RBC Visa Classic Low Rate | 12.99% | $20 | RBC banking clients |
| MBNA True Line Mastercard | 12.99% | $0 | No annual fee low-rate option |
Is a Balance Transfer Right for You?
Balance transfers make sense when:
- You have $2,000+ in high-rate credit card debt
- You can commit to paying it off within the promotional window (or are comfortable with the ongoing low rate)
- You won’t use the new card for new purchases — new purchases often accrue interest at the full rate, and payments typically pay down the low-rate balance first
If you’re using the card for ongoing spending, a rewards card might generate more value than a small ongoing rate reduction.
Related Articles
- Best No Annual Fee Credit Cards in Canada
- Best Secured Credit Cards in Canada
- Understanding Credit Scores in Canada
- All Credit Card Reviews
Card details current as of June 2026. Promotional offers change frequently — verify current terms with the issuer before applying. See our Advertiser Disclosure.