A balance transfer moves existing high-interest credit card debt to a new card at a lower — often 0% — promotional interest rate for a set period. Used strategically, a balance transfer can save hundreds or thousands in interest while paying down debt faster.
Best Balance Transfer Credit Cards in Canada
| Card | Annual Fee | Promotional Rate | Promo Period | Transfer Fee | Best For |
|---|---|---|---|---|---|
| MBNA True Line Gold Mastercard | $39 | 0% (promo, verify) | 6–12 months (verify) | 3% | Ongoing low rate (8.99%) after promo |
| CIBC Select Visa | $29 | 0% (promo, verify) | 10 months (verify) | 1% | Low transfer fee |
| TD Emerald Flex Rate Visa | $25 | Low ongoing rate | None | None | Flexible low-rate card |
| BMO Preferred Rate Mastercard | $20 | 3.99% (promo, verify) | 9 months (verify) | 1% | Lowest annual fee |
| Scotiabank Value Visa | $29 | 0% (promo, verify) | 6 months (verify) | 1% | No frills balance transfer |
| MBNA True Line Mastercard | $0 | 0% (promo, verify) | 6–12 months (verify) | 3% | No-fee option |
Important: Balance transfer promotional rates change constantly. Always verify the current offer directly with the issuer before applying. The rates and periods listed are estimates based on recent typical offers.
How Balance Transfers Work in Canada
- Apply for the new card — Note the promoted balance transfer offer in the application
- Request the transfer — Specify which card(s) to transfer from and the amount
- The new issuer pays off your old card — Typically takes 5–10 business days
- Pay down the transferred balance — Before the promotional period ends
- Promotional rate expires — Remaining balance converts to the card’s standard purchase or balance transfer rate (often 19.99%–22.99%)
The Balance Transfer Fee
Most Canadian balance transfers charge a one-time transfer fee of 1%–3% of the transferred amount:
| Transfer Amount | 1% Fee | 3% Fee |
|---|---|---|
| $3,000 | $30 | $90 |
| $7,000 | $70 | $210 |
| $15,000 | $150 | $450 |
Even with a 3% fee, transferring $7,000 from a 19.99% card to 0% for 12 months saves approximately $1,300 in interest minus $210 fee = $1,090 net saving.
How Much Can You Save?
Example: $8,000 balance on a 19.99% credit card making minimum payments.
| Strategy | Interest Paid (12 months) | Time to Pay Off |
|---|---|---|
| Stay at 19.99% (minimums) | ~$1,590 | 25+ years |
| Transfer to 0% promo, pay $700/month | $0 during promo | 12 months |
| Net saving | ~$1,500+ | — |
Warning: This only works if you pay down the balance before the promotional period ends. If you don’t, the remaining balance reverts to the standard rate — often 19.99%–22.99%.
Critical Rules for Balance Transfers
- Do not make new purchases on the transfer card — Payments typically go to the lowest-interest balance first; new purchases accumulate interest at the standard rate during the promo period
- Know the promo expiry date — Calendar it and plan to have the balance paid off or transferred again before it lapses
- Avoid minimum payments — Calculate the monthly payment needed to clear the balance within the promo period
- Don’t close the old card immediately — It affects credit utilisation; wait 3–6 months after the transfer
- One transfer per card — Most issuers allow a balance transfer only at account opening or during a limited window
Alternative: Low-Rate Cards for Ongoing Carry
If you regularly carry a balance month-to-month (not a one-time emergency), a low-interest card beats a promotional balance transfer:
| Card | Rate | Annual Fee |
|---|---|---|
| MBNA True Line Gold Mastercard | 8.99% | $39 |
| BMO Preferred Rate Mastercard | 12.99% | $20 |
| MBNA True Line Mastercard | 12.99% | $0 |
At 8.99% vs 19.99%, you save $550/year on a $5,000 ongoing balance — permanently, not just for a promo period. See MBNA True Line Gold vs BMO Preferred Rate for a full comparison.
Related Articles
- Balance Transfers in Canada — How They Work
- MBNA True Line Gold vs BMO Preferred Rate
- How Credit Card Interest Works in Canada
- Best Low-Interest Credit Cards in Canada
- Credit Card Basics — Canada Guide
Balance transfer promotional rates, periods, and fees change frequently and are only available at the time of application. Always verify current offers directly with the issuer. See our Advertiser Disclosure.