Canada’s best balance transfer credit cards 2022

The best balance transfer credit cards in Canada 2022

MBNA True Line Mastercard*

The MBNA True Line Mastercard commands no annual fee, and when you sign up and transfer your balance within 90 days, you’ll get a full year interest-free. While there is a balance transfer fee of 3%, the long grace period makes this a strong card for those who need to pay down debt. At the end of the promotional period, any remaining balance will be subject to the regular rate of 12.99%, which is still significantly lower than most regular cards. A solid promotion and no annual fee make the MBNA True Line Mastercard one of the best balance transfer credit cards around.

• Annual fee: $0
• Interest rates: purchases 12.99%, cash advances 24.99%, balance transfers 12.99% 
• Balance transfer offer: Get a 0% promotional annual interest rate (“AIR”) for 12 months on balance transfers within the first 90 days of opening the account.

Get more details about the MBNA True Line Mastercard

CIBC Select Visa Card

The CIBC Select Visa easily wins the title of best balance transfer credit card in Canada for its unbeatable promotional offer: New cardholders enjoy a 0% interest rate for balance transfers for the first 10 months. This can be a great tool to consolidate and pay off debts with no interest. What about after the 10-month promotional period ends? This card’s regular interest rate of 13.99% kicks in—that’s lower than the average credit card (19.99%). So if you’re still paying off what you transferred, you can benefit from a lower interest rate. The $29 annual fee is rebated for the first year for you and three authorized users. Note: There is a 1% balance transfer fee (for example: $10 on a $1,000 balance). It’s a flat-rate, one-time fee.

The balance transfer offer is available exclusively to new cardholders when applying online, and you can only transfer up to 50% of your assigned credit limit.

• Annual fee: $29 (rebated for the first year)

• Interest rates: purchases 13.99%, cash advances 13.99%, balance transfers 13.99%

• Balance transfer offer: Get 0% interest for up to 10 months with a 1% transfer fee. For the first year, you'll also get an annual fee rebate.

Scotiabank Value Visa*

When you sign up for Scotiabank’s Value Visa, you get a super-low interest rate of 0% on cash advances for the first six months. After the introductory period is over, your interest rate will increase to 12.99%, which is still lower than most cards. Plus, you can use your card to get car rental discounts at Avis. While the card does have an annual fee, it’s a modest $29. Plus, there’s no balance transfer fee to pay.

• Annual fee: $29 (waived for the first year)
• Interest rates: purchases 12.99%, cash advances 12.99%, balance transfers 12.99%
• Balance transfer offer: Get 0.00% interest on cash advances for the first 6 months.
• Additional benefits: Get a 25% discount on rental cars at participating Avis Rent A Car locations

Get more details about the Scotiabank Value Visa*

BMO Preferred Rate Mastercard*

This Mastercard comes with a low annual fee (which is refunded in the first year) and an appealing balance transfer welcome offer. The interest rate on your balance transfers is 0.99% for 9 months. However, you’ll be charged a 2% fee on the amount you transfer over (for a balance transfer of $1,000, that works out to $20). After the 9 months are up, you’ll be charged 12.99% on any remaining balance. If you make any additional purchases during that 9-month period, you will be charged 12.99% on new balances, if you don’t pay in full by the end of the grace period noted on each statement. Perks include extended warranty and purchase protection, plus a 15% discount on Cirque du Soleil shows in Canada and 20% off its shows in Las Vegas.

• Annual fee: $20 (refunded in the first year)
• Welcome offer: Earn a 0.99% introductory interest rate on balance transfers with a 2% transfer fee for the first 9 months.
• Interest rates: purchases 12.99%, cash advances 15.99%, balance transfers 12.99%
• Balance transfer offer: 3.99% introductory interest rate on balance transfers in the first 9 months; 1% transfer fee
• Additional benefits: Extended warranty and purchase protection; discounts on Cirque du Soleil admission

Get more details about the BMO Preferred Rate*

BMO Air Miles Mastercard*

Even though this card has no annual fee, it comes with perks that may benefit you if you don’t think you’ll be carrying a debt for a long time. In addition to the introductory offer of 1.99% interest on balance transfers for the first 9 months, you can collect Air Miles at an accelerated rate on your new purchases, and you’ll get twice the miles when you shop at Air Miles partners, and 1 mile per $20 spent everywhere else. New cardholders receive 800 bonus miles, too.

This card comes with extended warranty and purchase protection and a discount on Cirque du Soleil shows. However, if you don’t pay off your balance within the first 9 months, your interest rate will go up to 22.99%, which is a typical interest rate for most credit cards. Interest may accumulate quickly if you still have a lot of debt to pay off. 

• Annual fee: None
• Interest rates: purchases 19.99%, cash advances 22.99%, balance transfers 22.99%
• Balance transfer offer: Earn 800 Air Miles bonus miles ($80 value) and a 1.99% introductory interest rate on balance transfers for the first 9 months with a 1% transfer fee.
• Additional benefits: Twice the miles for every $20 spent at Air Miles partners; 1 mile for every $20 spent everywhere else; extended warranty and purchase protection; Cirque du Soleil discounts

Get more details about the BMO Air Miles Mastercard*

BMO CashBack Mastercard*

With no annual fee, a $15,000 annual income requirement and a promotional interest rate of 1.99% on balance transfers for your first 9 months (with a 1% transfer fee), the BMO CashBack is perfect if you’re in a low income bracket and want to get a handle on your credit card balance. This card can also put some of your everyday spending money back in your pocket: Get 5% cash back in your first 3 months. The regular rate is 3% on groceries and 1% on recurring bill payments (up to $500 spent per month in each category and an unlimited 0.5% on everything else). The card includes standard insurance coverage, like extended warranty and purchase protection, too.

• Annual fee: $0
• Welcome offer: Get up to 5% cash back for the first 3 months. Plus earn a $50 cash back bonus after you spend over $6,000 on purchases in your first year of having the card. It also features a 1.99% introductory interest rate on balance transfers for 9 months with a 1% transfer fee

• Interest rates: purchases 19.99%, cash advances 22.99%, balance transfers 22.99%

• Balance transfer offer: 1.99% interest on balance transfers for your first 9 months; 1% transfer fee
• Additional benefits: Members receive 25% off National and Alamo car rentals

Get more details about the BMO CashBack Mastercard*

What is a balance transfer?

A balance transfer is the transfer of debt from one credit card to another. Although a cardholder can transfer their debt for a variety of reasons, the goal is usually to cut down on the amount of interest charged and pay off the loan faster.

As most everyday-use credit cards command an interest rate of around 20%, your principal debt load can bloat quickly. By transferring debt to a card with a lower interest rate, you’ll incur lower interest charges—so more of your money goes to the principal balance.

Important things to know about balance transfer credit cards

Balance transfers can be an effective way to consolidate and address debt. But before you jump in, there are seven main variables you need to understand.

1. Shop around for the rate, timing and terms that suit you best
   If you’re trying to eliminate credit card debt, your best bet might be a balance transfer credit card. These cards come with promotions that let cardholders pay very low interest (sometimes as little as 0%) for a limited time (like six or 10 months). These offers can be a really effective way to bring down your debt, fast, if you are disciplined about making regular payments and are not racking up a lot of new purchases. The card you choose will depend largely on what’s available when you’re looking, how long you think you’ll need to pay off your debt, and the card’s other terms.
2. Make sure you’re eligible for the balance transfer
   Balance transfer promotions are only valid when moving debt from a credit card at one bank to a card at another bank. It will not work between two cards from the same bank. 
3. Timing is everything
   Balance transfer promotions are available at the time that you make your application or sometimes shortly thereafter. Be strategic about when you apply, and make sure you’re prepared to make the transfer. That means having the credit card company name, your name as it appears on the card, the debt total and the credit card number.
4. Remember that balance transfer promotions don’t last forever
   The low, single-digit rates available on balance transfer credit cards are limited-time offers. Once the promotional period is over, the cards’ regular interest rates will kick in, which will affect your monthly payments. How you handle this will depend on the amount of your debt and how quickly you think you can pay it off. But, in general, the best strategies are to pay off the balance before the balance transfer offer ends, and to pick a card with a low regular interest rate. This way, you’ll save money on interest even if you still owe after the offer period.
5. Make your minimum payments
   Even when taking advantage of a balance transfer offer, you must make at least the minimum payment on the card, on time, each month. If you don’t, that super-low promotional interest rate can quickly be discontinued and the standard interest rate will kick in almost immediately. In other words, only take advantage of a balance transfer offer if you have the cash on hand to make at least the minimum payment each month and you’re in the right financial mindset to take on debt repayment.
6. Balance transfer fees
   Some—but not all—cards charge a fee for balance transfers. This fee is expressed as a percentage of the total amount you want to move, and it usually ranges from 1% to 3%. So, for example, if you’re looking to transfer $1,000 in debt to a card with a 3% fee, your opening balance will be $1,030. The additional cost may well be worth the money you’ll save at the new lower interest rate. But keep your eyes open for fee deals: Occasionally, a card will run a promotion where the balance transfer fee is waived.
7. Separate your expenses
    If you charge a new purchase to your balance transfer card, this spend will be charged at the card’s regular interest rate if you don’t pay on time, not the promotional rate that’s applied to the balance you’ve transferred. This might not seem like a big deal, especially if you’ve been lucky enough to find a card with a lower regular rate, but there’s an additional catch: Most credit cards apply payments to debt marked at the low or promotional rate first, which means your high-interest purchases are sitting there longer, racking up interest. If you’re trying to pay down debt, this only compounds the problem. It’s good practice to leave your balance transfer card at home and use a different financial product (like debit, cash or even a different credit card) for new purchases. 

Do you earn cash back on balance transfers?

Like cash advances or purchases of money orders, balance transfers are not considered to be purchases, so in general, they’re not eligible for cash back rewards. There may be some rare exceptions with certain promotional offers, but these are few and far between. That said, the interest saved by moving your debt to a card with a lower interest rate will far outweigh the value of most cash back returns.

How does a balance transfer credit card impact my credit score?

When you apply for any credit card, you receive a hard credit inquiry that can temporarily bring your credit score down a few points. This includes balance transfer cards. However, this is not a reason to avoid applying. 

If you’re looking into a balance transfer credit card, it’s likely because you’ve got some outstanding credit card debt. Moving that debt in order to reduce it will have a positive, lasting impact on your credit score in the medium to long term. 

The lower interest rate means more of your money goes to paying down the balance, so you can reduce your debt load faster. A smaller debt load can improve your credit score because it lowers your credit utilization—a major credit score factor that measures the ratio between the balance and the total credit limit. (Say you owe $600 on a credit card with a limit of $2,000. Your credit utilization would be 30%. Having a credit utilization score of 30% or lower is considered good.)

When you consider everything, the damage your debt load does to your credit score far outweighs the small and temporary effect on your credit score caused by a credit card application. When it comes to debt, always look for the longer-term solution.

More on credit cards:

• The best instant approval credit cards in Canada 2022
• Canada’s best credit cards for gas
• Canada’s best credit cards for grocery purchases
• Best cash back credit cards

Our methodology

For the best balance transfer credit cards 2022 ranking, we categorized credit cards based on their limited-time balance transfer rates. Our rankings also took into account fixed annual interest rates on balance transfers and purchases, purchase protections and annual fees.

‡MoneySense.ca and Ratehub.ca are both owned by parent company Ratehub Inc. We may be partnered with some financial institutions, but this does not influence the “Canada’s Best Credit Card” rankings. You can read more about this in our Editorial Code of Conduct.