BMO Preferred Rate Mastercard Review 2026: Is It Worth It in Canada?

The BMO Preferred Rate Mastercard is a no-frills low-interest credit card with a purchase rate of 12.99% and a $20 annual fee. It earns no rewards and offers no travel perks — its sole purpose is reducing interest costs for Canadians who regularly carry a credit card balance. At $20/year, it is one of the lowest-cost low-interest options in Canada, and the interest savings on even modest carried balances significantly exceed the annual fee.

Quick Verdict

Best for: Canadians who consistently carry a monthly credit card balance and want to reduce interest costs with a low-rate Mastercard from a major bank.
Not ideal for: Those who pay their balance in full each month (a rewards card is almost always better), or those carrying very small balances where total interest savings may not cover the $20 fee.

Key Card Details

Interest rates and terms are subject to change. Verify current details at bmo.com before applying.

The Core Case: Interest Savings at 12.99%

The BMO Preferred Rate Mastercard’s value is entirely the gap between 12.99% and the standard 19.99% rate on most Canadian credit cards — a difference of approximately 7 percentage points.

Approximate calculations using simple interest. Actual savings depend on your statement balance, payment pattern, and compounding. Verify exact interest calculations with BMO.

At a $1,000 average carried balance, the Preferred Rate saves approximately $50/year net after the $20 annual fee. At $2,000+, the savings are substantial.

Who Should Consider a Low-Interest Card?

A 12.99% card makes sense if:

1. You regularly carry a balance — even a consistent $500–$1,000/month balance means paying significant annual interest
2. You are in a transitional period — income disruption or a large purchase has temporarily increased your balance
3. You want to consolidate debt — balance transfer promotions (verify availability at bmo.com) may let you move high-interest balances to 12.99%
4. You want a Mastercard for day-to-day use while paying down a balance at lower cost

The honest trade-off: If you can pay your balance in full, a rewards card is almost always better. The BMO CashBack World Elite Mastercard earns 5% on grocery for the first $500/month and 1% elsewhere — worth $500–$700+/year for a moderate spender. Low-interest cards exist for balance management, not rewards optimization.

Balance Transfer: Is It Available?

BMO periodically offers balance transfer promotions on the Preferred Rate Mastercard — typically a low promotional rate (e.g., 0.99%, 3.99%) for a limited period (e.g., 9–12 months) on balances transferred from other cards.

If you are carrying high-interest debt on another card, a balance transfer to the BMO Preferred Rate at a promotional rate can save hundreds of dollars in interest while you pay down the principal. Verify whether a current balance transfer promotion is available at bmo.com, and note:

• Balance transfer fees typically apply (usually 1–3% of the transferred amount)
• The remaining balance after the promotional period reverts to 12.99%
• Always have a repayment plan before transferring a balance

Fees and Rates

What Benefits Does It Include?

The BMO Preferred Rate Mastercard is a utility card. Benefits are minimal:

• Purchase protection: May include basic 90-day purchase security — verify at bmo.com
• Extended warranty: Verify at bmo.com
• Mastercard Zero Liability: Standard Mastercard fraud protection
• No rewards, no travel insurance, no lounge access

BMO Preferred Rate Mastercard vs. Other Low-Interest Cards

The BMO Preferred Rate has the lowest annual fee ($20) among major-bank low-interest cards. At the same 12.99% purchase rate as the MBNA True Line ($39) and Scotiabank Value Visa ($29), BMO’s Preferred Rate saves $9–$19/year in fees — a meaningful advantage for long-term balance carriers.

Who Is the BMO Preferred Rate Mastercard Best For?

Ideal cardholders:

• BMO banking clients who want to keep their credit card within BMO’s product ecosystem at low cost
• Canadians consistently carrying a $500–$5,000 monthly balance who are paying excessive interest on standard-rate cards
• Those who have already committed to a low-interest card and want the lowest possible annual fee at 12.99%
• Anyone considering a balance transfer who wants a low ongoing rate after any promotional period ends

Less suitable if:

• You pay your balance in full — use a rewards card instead
• You want cash back or travel points
• Your balance is very small (under $250/month) and interest savings may not cover the $20 fee

Alternatives

Bottom Line

The BMO Preferred Rate Mastercard is a strong choice in a narrow category: low-interest cards for balance carriers. At $20/year and 12.99%, it has the lowest annual fee of any major-bank low-rate card in Canada at this rate tier. For Canadians who consistently carry a balance of $500 or more, it will save money compared to keeping a standard 19.99% card.

Card terms, interest rates, and fees are subject to change. Verify all details at bmo.com before applying.

Related Articles

• MBNA True Line Mastercard Review 2026
• Scotiabank Value Visa Review 2026
• Best Credit Cards for Balance Transfers Canada 2026
• Best Low Interest Credit Cards in Canada 2026
• BMO CashBack Mastercard Review 2026