Best Balance Transfer Cards In Canada For May 2024

When determining a rating for individual credit cards, the Forbes Advisor Canada editorial team factors in an exhaustive list of data points. With the best balance transfer cards, the scoring model used takes into account factors such as, but not limited to, length of low interest rate on balance transfers, fees, welcome bonus, and other rewards and benefits. Keep in mind, what may be best for some people might not be right for you. Conduct informed research before deciding which cards will best help you achieve your financial goals.

MBNA True Line® Mastercard®

The best credit card in Canada if you need a year to pay off your credit card balance.

Rewards: None

Welcome Offer: None

Annual Fee:  $0

Other Benefits and Drawbacks: The card offers a 0% promotional annual interest rate (“AIR”)† for 12 months on balance transfers✪ made within 90 days. After the promotional balance transfer period ends, this card still offers a low minimum APR of 12.99% on purchases. However, keep in mind that a 3% fee applies to balance transfers, even during the promotional period.

†, ✪, Terms and Conditions apply. This offer is not available to residents of Quebec.

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BMO CashBack Mastercard

You can earn between 0.5% and 3% cash back on everyday purchases like groceries and recurring bills.

Rewards: 3% cash back on grocery purchases and 1% cash back on recurring bills.

Welcome Offer: 5% cash back on all purchases for the first three months (up to $2,500).

Annual Fee:  $0

Other Benefits and Drawbacks: After the promotional balance transfer period ends, this card still offers a low minimum APR of 12.99%. Even still, there is a 2% fee on balance transfers and a $500 purchase cap on the 3% cash-back rate on groceries (the rate reverts to 0.5% after that).

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BMO eclipse rise Visa

With every dollar spent, you’ll receive BMO Rewards points on all spending, but especially at grocery stores, restaurants and on food delivery and bill payments.

Rewards: Earn 5 BMO Rewards points per two dollars spent on groceries, recurring bill payments, restaurants and takeout (up to $5,000 annually per category, earn 1 point per two dollars after that). Earn 1 BMO Rewards point per dollar on everything else.

Welcome Offer: Earn 20,000 BMO Rewards points (20,000 points when you spend $1,500 in the first three months).

Annual Fee: $0

Other Benefits and Drawbacks: Easily redeem BMO Rewards points online for merchandise or as a statement credit. As for drawbacks, there is still a 2% fee on all balance transfers and this card doesn’t have much insurance coverage.

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BMO Air Miles Mastercard

Participate in the Air Miles rewards program and earn double the points when you also show your Air Miles card.

Rewards: Earn 3 Air Miles rewards for every dollar you spend at participating Air Miles partners, plus 2 times the miles at participating grocery stores.

Welcome Offer: Get 800 Air Miles Bonus Miles and 1.99% introductory interest rates on balance transfers for up to 9 months.

Annual Fee:  $0

Other Benefits and Drawbacks: Earn discounts at rental car locations and Cirque du Soleil shows. However, you can only earn bonus Air Miles at participating retail partners and the card doesn’t come with medical or travel insurance, despite being an Air Miles card.

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Tangerine Money-Back Credit Card

Choose up to three customizable categories to earn 2% cash back with no spending cap.

Rewards: Earn 2% cash back in two custom categories (three for Tangerine Savings account holders) and 0.50% cash back on everything else.

Welcome Offer: Get 15% cash back up to $1,000 worth of purchases in the first two months. Plus, you’ll pay 1.95% APR on all balance transfers for up to six months.

Annual Fee:  $0

Other Benefits and Drawbacks: Change your preferred earning categories on a monthly basis and enjoy no spending cap in any category. However, in order to get a third 2% cash-back category, you have to open a Tangerine Savings Account. Meanwhile, the 15% cash back welcome offer only applies in the first two months you are a cardholder, not the first year.

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Scotiabank Momentum No-Fee Visa Card

Choose up to three customizable categories to earn 2% cash back with no spending cap.

Rewards: Earn 1% cash back on every $1 you spend in everyday purchase categories and 0.5% on everything else.

Welcome Offer: Get 0.99% APR on balance transfers for up to 6 months.

Annual Fee:  $0

Other Benefits and Drawbacks: Choose Scotia Credit Card Protection (death benefit, critical illness benefit, etc.) as an option add-on, but you do have to pay extra for that Unfortunately, the balance transfer period is only six months and you only get 0.5% cash back on most purchases.

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ManulifeMONEY + Visa Platinum

Enjoy a balance transfer card with no annual fee and complimentary travel accident insurance.

Rewards: Earn 2% cash back on groceries, 1% cash back on gas and 0.5% on everything else.

Welcome Offer: 1.99% APR on balance transfers for six months.

Annual Fee:  $0

Other Benefits and Drawbacks: There is no online application (you must call to apply and the balance transfer period is short compared to some of the other cards on this list).

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Alterna Savings Cash Back Visa

A balance transfer rewards card from a direct bank instead of a traditional “Big Five” bank option.

Rewards: 2 points for every dollar spent on gas purchases, 1 point per dollar spent on entertainment purchases and 0.5 points per dollar on every other purchase.

Welcome Offer: Get $50 cash back when you sign up for the card and 0% APR on balance transfers for the first 9 months.

Annual Fee:  $0

Other Benefits and Drawbacks: There are no spending caps and you can redeem rewards for merchandise, gift cards, travel, charity donations and statement credits. However, there’s no welcome bonus beyond the balance transfer offer. Plus, the earn rates and insurance options are also limited.

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CIBC Select Visa Card

A long promotional balance transfer period with lenient approval requirements.

Rewards: None

Welcome Offer: 0% APR on balance transfers for 10 months.

Annual Fee:  $0

Other Benefits and Drawbacks: There is no rewards program.

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Alterna Savings Cash Back Visa

A balance transfer rewards card from a direct bank instead of a traditional “Big Five” bank option.

Rewards: 2 points for every dollar spent on gas purchases, 1 point per dollar spent on entertainment purchases and 0.5 points per dollar on every other purchase. Welcome Offer: 3.90% APR on balance transfers for six months.

Annual Fee:  $0

Other Benefits and Drawbacks: There are no spending caps and you can redeem rewards for merchandise, gift cards, travel, charity donations, and statement credits. However, there’s no welcome bonus beyond the balance transfer offer, the earn rates and insurance options are also limited.

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BMO Preferred Rate Mastercard

Keep it simple with a card that offers a standard 12.99% APR after the promotional balance transfer period.

Rewards: None

Welcome Offer: 0.99% APR on balance transfers for 9 months.

Annual Fee:  $20

Other Benefits and Drawbacks: No extended insurance offerings, but the 12.99% rate on purchases for as long as you own the card always keeps interest charges under control, especially if you usually carry a balance.

Data research and analysis provided by Tia Duncombe and Debra Toews.

When it comes to a credit card, a balance transfer is the ability to transfer a balance from a credit card with one APR to another credit card with a lower APR either in perpetuity or for a limited period of time. In all cases, the new, lower APR only applies to the balance that is transferred, not new purchases made subsequently. The ability to transfer a balance usually comes with a balance transfer fee, which is a percentage of the balance being transferred.

Is it Worth Getting a Balance Transfer?

It can be worth getting a balance transfer if you believe you can significantly pay down or pay off the balance in question within the time period where the lower interest rate is being offered and if you’ll be able to pay the balance transfer fee. If neither of these things are realistic, you may want to avoid a balance transfer until the balance itself is a little smaller.

Related: Best Canadian Credit Cards

What is a 0% balance transfer credit card?

A 0% balance transfer credit card means that the card in question offers 0% interest on the transferred balance for a period of time (typically between six and 12 months). All new purchases made on the card will be subject to the card’s regular interest rate. Also, once the balance transfer period ends, if the initial transferred balance is not paid, it will also be subject to a higher interest rate. Balance transfers typically come with a transfer fee of 1% to 2% of the transferred amount, too. All that to say, a 0% balance transfer credit card can be a great way to pay off your principle balance with the right repayment plan.

A balance transfer is simply the act of moving your balance from one credit card to another. Typically, the card you’re transferring to has some kind of incentive, such as no (or very low) interest for a period of time. Balance transfers can usually be made online or via your mobile banking app, but in some cases you may need to speak to your bank over the phone or at the branch to make one. 

Typically, balance transfers are done between different financial institutions, not within the same bank. There is also typically a balance transfer fee, which is a small percentage of the amount transferred, usually 1% to 2%.

Balance transfers can take time to go through, usually seven to ten business days. Once you’ve transferred your balance, be aware that new purchases made on the card are subject to higher interest rates than the balance transfer funds. Also, if your balance transfer has a low interest rate for a period of time, know that the balance left over at the end of that time period will be subject to high interest rates from then on.

Benefits of Balance Transfer Credit Cards

• Low interest rates: Balance transfer credit cards offer significantly lower interest rates compared to standard credit cards, particularly with their promotional offers. Unlike the typical interest rates of most credit cards (which is usually around 20%), certain balance transfer credit cards provide a zero-interest period from up to 12 months.
• Great for debt repayment: With only very low (or no) interest to worry about, you can concentrate solely on paying off your existing debt without accumulating new interest charges. That said, it’s crucial to create a repayment plan to avoid accruing interest once the promotional period expires and the interest rate goes back up to normal (or higher).

Drawbacks of Balance Transfer Credit Cards

• Time-sensitive: The low interest rate that draws you into making a balance transfer is usually only available for a short period of time. After that period is up, interest rates on your balance go back to normal, so it’s important to insurance you can pay off (or make a dent in) your principle balance during the balance transfer period.
• Unsuitable for new purchases: Your new card may advertise an ultra-low interest rate, but know that it only applies to the transferred balance. New purchases made on the card will be subject to the card’s regular purchase interest rate.

Benefits of Balance Transfer Credit Cards

Just like with any credit card, it’s important to find a balance transfer card that meets your needs. Here are a things to ask yourself before getting a balance transfer credit card:

• How long is the introductory or promotional period?
• What is the standard interest rate after the promotional period expires?
• What is the minimum and maximum transfer amount?
• What is the balance transfer fee?
• Does the card have an annual fee?

Comparing Promotional Periods for Balance Transfer Credit Cards

Balance transfer promotions vary in their interest rates and the length of the promotional interest period. For instance, one card might have 0% interest on balance transfers for 9 months, while another may offer 1.99% interest for 12 months.

Before applying for a balance transfer credit card, it’s important to make sure the length and interest rate align with your repayment plans. Otherwise, you risk paying high interest on the remaining balance once the promotional period ends.

Understanding 0% Interest Periods

Certain credit cards advertise interest-free balance transfers, which can be a great way to pay off the principle balance of the card. Subsequently, any remaining balance after the 0% promotional period will be subject to the card’s regular interest rate, which might be considerably higher.

Transferring a balance from one credit card to another is generally pretty simple and can be done in about three steps:

Request a Balance Transfer

This can be done either online, by phone or in-person through the credit card issuer that holds the credit card you want to transfer the balance to. You will likely have to provide information about the balance in question and you will need to go to a different issuer than that of the credit card where you initially held the balance you are transferring. This is because you won’t be able to transfer a balance from one credit card to another when both credit cards have the same issuer in common. This is a customary rule on all balance transfers in Canada.

Wait for the Balance Transfer to Go Through

It can take two to three weeks for a balance transfer to go through and you may not be notified once it does, so keep an eye on your old credit card account for the balance transfer fee. On the account where the balance was transferred, your amount owing will have grown because it will include the total balance transferred plus, 3% to 5% of that balance. This percentage represents the balance transfer fee and this fee is not subject to the lower interest rate on balance transfers. Remember that while you’re waiting for your balance transfer to go through, you may have to make a payment on that same balance on your old account in the meantime, depending on when your payment deadline falls.

Pay Off Your Balance

Once you’ve paid the fee, it’s time to continue to pay down your balance. Try to pay if off within the time period where a lower interest rate is offered and try not to make any new purchases during this period. Otherwise, you will be paying off parts of your overall balance at two different interest rates. If you manage to avoid making new purchases during the period where the promotional interest rate is in effect, such as 0.99% interest on purchases for 12 months, make sure you’re making payments that are large enough each month that you have a chance of paying it off before the promotional period expires and purchases revert to a higher interest rate. For example, if your balance is 12,000, you’ll need to make a $1,000 payment each month if by the end of the 12-month promotional period you want your balance to reach zero.

Related: How To Do A Balance Transfer With American Express

Along with paying down or off your newly transferred balance, you will be subject to a one-time balance transfer fee that’s usually 3% to 5% of the balance itself. You are also still subject to any annual fee if there is one and of course, both the promotional interest rate and, when the promotional rate expires, the more typical interest rate. Again, it should be noted that any new purchases are subject to the typical interest rate while the balance transferred is subject to the promotional rate during the promotional period, so you could be paying parts of your balance at two different interest rates.

Just like cash advances, balance transfers don’t earn cash back. Intro APR does not apply to any kind of rewards, including cash back. Only new purchases will receive cash back if rewards are to be had. You cannot get cash back on an existing balance transferred from another credit card. After all, the purchases that make up this transferred balance have already been made.

In order to better understand balance transfer credit cards, it’s helpful to have an example to work with. For instance, let’s say you carry $4,000 in credit card debt with a 20% interest rate and you make a $200 payment each month.

Here’s what would happen to that debt if you kept making your monthly payments with your standard credit card vs. if you made the same monthly payment to your debt after transferring it to a balance transfer credit card. Take a look:

In this scenario, you would be able to pay off your balance five months faster and save $843.81 in fees ($923.81 – $80) as well. As you can see, using a balance transfer credit card can help you pay off debt faster and pay less interest overall.

Using a balance transfer card can lead to significant savings—if you pay it off within the balance transfer promotional period and avoid accumulating new debt from purchases made with the card.

For example, let’s say you’re carrying a $12,000 balance on a card with a 20% APR. If you paid off that card over 12 months, you’d pay about $1,339.37 in interest.

If you transferred that $12,000 to a balance transfer card with a 2% transfer fee, you’d pay $240 (2% x $12,000) for the transfer and $0 in interest over the 12 months.

That means, you’d save $1099.37 in interest by using a balance transfer credit card to pay off your principle balance.

A balance transfer may hurt your credit score indirectly. A hard inquiry will be done on your credit report every time you apply for a new credit card, so if you applied for a new credit card just for the balance transfer offer, your credit score may have gone down a few points as a result of the hard inquiry. A balance transfer can also impact your credit score negatively if adding the balance to another card reduces your credit utilization. It will also impact your credit score negatively if you can’t make your payments on time and/or you’re only paying the minimum each time you make a payment. However, your credit score will go up if your able to make significant payments and greatly reduce your overall credit card utilization as a result of getting your balance close to zero.

Personal loans and balance transfers are both ways to consolidate and pay off high interest debt, but they function differently. A bank can approve you to get four times your income as a personal loan, whereas with a balance transfer, you are limited to the credit limit on the card you’re transferring the balance to. You can also more than likely qualify for an even lower interest rate with a personal loan, while with a balance transfer, you’re stuck with the interest rate prescribed by the card. You can transfer any kind of unsecured consumer debt to a personal loan as well, but with a credit card balance transfer, you can only transfer another credit card balance. Credit card balance transfers also come with a one-time balance transfer fee, while with a personal loan you must content with the ongoing “fee” that is the interest rate and its accumulation on the outstanding balance. Both options must be paid down until the balance reaches zero and both incur interest when not paid in full within the first payment grace period. Personal loans may have no grace period, however. Instead, they may incur more and more compounding interest for every day a balance remains on the card after the loan is charged.