Best balance transfer credit cards in Canada

The MBNA True Line® Mastercard® offers the most sought-after combination of features in a balance transfer. Get a 0% promotional annual interest rate (“AIR”)† for 12 months on balance transfers✪ completed within 90 days of account opening, with a 3% transfer fee.

This is far more manageable than the 20+% post-promotional rate typical of other balance transfer cards, and it’s a softer landing for those that are unable to pay off all their debt during the promo period. 12.99 is also the card’s purchase interest rate, so it qualifies as a strong low-interest card as well, particularly given the fact that it has no annual fee.

The card’s only weakness is its relatively high promotional balance transfer fee, a one-time charge of 3% of the amount transferred (minimum fee of $7.50).

• The Math: If you have a debt of $5,000, to pay off your balance within 12 months using MBNA's True Line Mastercard you would owe a 3% fee of $150. You would need to pay approximately $429.17 per month to pay off the total amount owed within 12 months.  

The Math: If you have a debt of $5,000, to pay off your balance within 12 months using MBNA's True Line Mastercard you would owe a 3% fee of $150. You would need to pay approximately $429.17 per month to pay off the total amount owed within 12 months.  

That fee is higher than the fees charged by most of the competing cards featured on this page, and it can amount to a significant upfront cost depending on the size of the balance you’d like to transfer.

What about the MBNA True Line Gold credit card?

The MBNA True Line® Gold Mastercard® qualifies as one of the best low interest credit card in Canada with balance transfer offer, but it doesn't make it the best for balance transfers.

The MBNA True Line Gold charges 10.99 regularly and 13.99 on balance transfers. However, their balance transfer fee is also the same. Let's do the math though just so you can see how much more you'll pay with a low interest card with a lower balance transfer fee.

• The math: To pay off your $5,000 balance within 12 months using a credit card with a low 13.99% APR, you would need to pay $453.08 per month to pay off the total amount owed, which includes the transfer fee ($150).

Which is a better offer?

 If you can pay off your debt in 12 months, the MBNA True Line® Mastercard® saves you more when compared to the MBNA True Line® Gold Mastercard®. However, if you go over the 12 month threshold, you may be better served with the MBNA True Line® Gold Mastercard®.  

Disclosures:

• †, ✪, Terms and Conditions apply.

  This offer is not available for residents of Quebec. For residents of Quebec, please click here.

  Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.

  The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.

The Scotiabank Value® Visa* Card is another credit card with low interest rates. 0.99% introductory interest rate on balance transfers for the first 9 months (2% fee per cash advance, 13.99% after that), plus no annual fee for the first year ($29 value). So this might be a good card for you even if you’re not 100% confident that you can pay off your transferred balance within the six months allotted.

Disclosures:

• Conditions Apply. Visit here for the Scotiabank Value® Visa* Card to learn more. *See Card Provider's website and Card Application for complete card details, terms and current offers. Reasonable efforts are made to maintain accuracy of information.

For starters, this card comes with a generous welcome offer: Get 5% cash back in your first 3 months* as a new cardholder.

The BMO CashBack® Mastercard®* helps you earn cash back faster. You can earn 3% cash back on groceries, 1% on any recurring bill payments* and 0.5% on all other eligible purchases*.

This is the perfect card for families with young kids who want to take their time to pay off debt because their cash flow is so tight.

Disclosures:

• BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.

The Tangerine Money-Back Credit Card offers an advantageous balance transfer option to new cardholders, who pay just 19.95% There’s a 3% transfer fee* and no “apply by” date. This perk complements the card’s flexible savings power.

People with large families who spend a bundle on groceries can pick the grocery category and start earning cash back, with other categories including common buys like restaurants, gas, home improvement, drug store purchases and recurring bills. Categories can be swapped at any time you like.

It’s also possible to get a third cash back category by signing up for a Tangerine Savings Account and having your cash back deposited there. When you consider that you’ll also earn 0.5% cash back on everything else, the savings will quickly add up. Peripheral perks on the card are the absence of an annual fee, as well as standard 90-day purchase insurance and extended warranties by up to an additional year.

Note that if you have an annual personal income of at least $60K, or household income of at least $100K, you should check out the Tangerine World Mastercard instead. It has no annual fee and offers the same balance transfer deal and flexible rewards as the Tangerine Money-Back Credit Card, but provides extra features including mobile device insurance, airport lounge access, and car rental insurance.  

Disclosures:

• *Terms and conditions apply

The CIBC Select Visa* Card offers Transfer your credit card balance - Get 0% interest for up to 10 months with a 1% transfer fee† and a first year annual fee rebate‡. Currently, the only card on the market to offer such a balance transfer promotional rate, this card is perfect to help close the gaps created by your holiday spending, for instance. First year annual fee rebate† $0 for up to 3 additional cards.†. (terms apply)

Aside from offering the best balance transfer promotional rate on the market, the card also provides cardholders with common carrier insurance and the option to pay for other insurances.

Disclosures:

• †Terms and Conditions Apply. This offer is not available for residents of Quebec.
• The information for the CIBC Select Visa* Card has been collected independently by Money.ca. The card details on this page have not been reviewed or provided by the card issuer.

Recent data indicates significant shifts in Canadian consumer credit card debt patterns:

• Debt escalation: Total consumer debt in Canada reached $2.5 trillion in Q2 2024, marking a 4.2% year-over-year increase. Credit card balances have surged to $122 billion, representing a 13.7% rise from Q2 2023.
• Per capita debt: The average credit card balance per consumer has exceeded $4,300, the highest level observed since 2007. This metric underscores the growing financial pressure on Canadian households.
• Demographic variations: Consumers aged 26-35 are experiencing the highest delinquency rates at 1.99%, a 21.6% increase from the previous year. This trend suggests particular financial strain on younger demographics.
• Delinquency: Payment delinquency has risen, with one in 23 consumers missing a payment on at least one credit product in Q2 2024, up from one in 25 a year prior. The non-mortgage balance delinquency rate has reached 1.4%, the highest since 2011.
• Economic factors: High living costs and an unemployment rate of 6.4% are contributing to increased missed payments and credit reliance.
• Essential expenses: Approximately 69% of Canadian adults (22.4 million) reported using credit cards for essential purchases in the past 12 months, indicating widespread reliance on credit for basic needs.
• Debt longevity: 55% of Canadian adults are carrying credit card debt, up from 43% in the previous year. Of those, 51% anticipate it will take six months or longer to clear their balances.

These trends underscore the growing importance of effective debt management strategies and the potential role of balance transfer products in mitigating high-interest debt burdens for Canadian consumers.

The process of executing a balance transfer will generally be similar from one card issuer to the next and should more or less follow the sequence below:

1. 1.

   Choose the right card: Research balance transfer credit cards available in Canada. Look for low introductory rates and reasonable balance transfer fees.

2. 2.

   Apply: During the application, you’ll need to provide details about the debts you want to transfer, including creditor names, account numbers, and amounts.

3. 3.

   Wait for approval: Once approved, your new credit card issuer will handle the transfer process. This typically takes 2-4 weeks.

4. 4.

   Maintain payments: Continue making minimum payments on your old cards until the transfer is complete to avoid late fees.

5. 5.

   Act within the promo window: Most balance transfer offers in Canada have a time limit for making transfers, usually around 3 months from account opening.

6. 6.

   Understand your limits: The amount you can transfer varies by card. Some allow transfers up to your full credit limit, while others may cap it at a percentage.

7. 7.

   Stay on top of payments: Missing a payment during the promotional period can result in a significant rate increase. Consider setting up automatic payments.

8. 8.

   Create a repayment plan: Develop a budget to maximize your debt repayment during the low-interest period.

Beware new purchases

Balance transfer credit cards only give you a low interest rate on your transferred balances, whereas new purchases made with the card will likely be subject to a much higher rate. If you intend to make new purchases with your credit card in addition to carrying a balance then either make sure the card you select also has a relatively low purchase interest rate or close the card once the balance is paid off and open a different low interest rate credit card. See our list of the best low interest credit cards for some options.

Balance transfer credit cards are an easy way to save hundreds of dollars in interest charges as you pay off a debt.

Let’s say, for example, you owe $3,000 on a department store credit card at 19.99% interest. You decide to finally get serious about paying it off by transferring the debt to the CIBC Select Visa* Card and allocating $505 each month to repaying it. In that scenario you would manage to get rid of the debt within a 6-month period, paying nothing in interest charges and only $30 for the balance transfer fee. But if you had stuck with the department store credit card it would have taken you seven months to pay off with a $505 monthly payment, and you’d have paid about $186 in interest over the course of the repayment period. Doing the balance transfer would have saved you $15

By doing nothing more than applying for a different credit card and taking advantage of their promotional rate you’ve saved yourself $156 — and of course, the bigger the balance the bigger the savings.

While a balance transfer promotion is typically used for the transfer and consolidation of credit card debt, your card issuer might also allow you to transfer balances from loans or lines of credit, giving you more savings options. Be sure to check with your issuer if that’s something you’re seeking.

It’s also worth noting that card issuers typically do not allow balance transfers to earn rewards points or cash back, so don’t calculate that into your anticipated savings. There are, however, some cards that offer both a low-interest balance transfer promotion and the chance to earn cash back or rewards points on regular purchases.

Before choosing a balance transfer credit card take your time to shop around and make sure you pick the right one for your financial situation. Read reviews, check rates and promotions, and calculate exactly how much you can save in interest and fees while responsibly repaying your debt. And don’t forget to read the fine print — not all balances can be transferred from one institution to the next.

Consider the promotional balance transfer rate

The whole point of getting a balance transfer credit card is to minimize the carrying cost of your debt, so the lower the interest rate the better.

Credit card balance transfer promotion length

The ultimate goal is to pay off all your transferred debt at your new balance transfer card’s low promotional interest rate. The special rate usually lasts between six and nine months, but occasionally a card will offer a deal for 10 months or longer.

If your balance transfer promotion is ending before you’ve paid off all your transferred debt, you can try to ‘surf’ your balance to another balance transfer card. But remember, there are a limited number of balance transfer deals in Canada, and it’s never guaranteed that another card issuer will accept your application. It’s best to maximize the first balance transfer promotion you get and pay off as much of your debt as you can during that period.

Post-promotional balance transfer interest rate

Some cards, like the Scotiabank Value® Visa* Card, still have relatively low rates even after their balance transfer promotional period ends. Other cards immediately bump the interest rate up to 19.99% or higher, which can be financially detrimental if you haven’t yet paid off the balance.

Check and check again if the interest rate after the promotional term ends will be applied to only the remaining balance after the promotional period, or if it will be retroactively calculated on the amount owing for the entire time you’ve had the card.

Credit card balance transfer fee

Most balance transfer cards charge a one-time balance transfer fee, typically between 1% to 3% per transferred balance. In most cases, the cost of the transfer fee will be added to your balance. For example, if you transfer $4,000 of credit card debt and are charged a 1% balance transfer fee you will be charged $40 and your new transferred balance will appear as $4,040 on your card.

Eligibility criteria and card issuer

The balance transfer card you have your eye on might require a minimum annual income, decent credit score, and a credit standing free of current bankruptcies or consumer proposals. Furthermore, the card issuer likely will not allow you to transfer a balance from one of its own credit cards, or the credit cards of its subsidiaries.

For instance, Tangerine is owned by Scotiabank and may therefore not allow the transfer of a debt owed to its parent company. Check with the bank before applying if you’re concerned that you might not qualify for a card or that the debt may be ineligible for transfer.

Read more: The ultimate guide to credit scores

Credit card payments can be allocated in different ways, each with its own financial implications. You might choose to allocate your payment to your highest interest rate balance (such as a 24% cash advance), to your lowest interest rate balance (0%), or proportionately based on the size of each rate's balance.

In Canada, credit card companies follow a specific allocation method. If your credit card account consists of balances with different interest rates, any payment exceeding the minimum payment due will be allocated proportionately to those balances. Your payment will not be applied to the balance of your choice, such as the balance with the highest interest rate.

For example, if your balance from purchases at the standard rate is $700 and you have a balance from a cash advance of $300 at a 0% promotional interest rate, proportionate allocation means that 70% of your payment will be allocated to your purchase balance and 30% will be allocated to your cash advance balance.

With proportional allocation, the only way to get rid of your high interest balance is to pay down your low interest balance completely. However, if your low interest balance is high, your high interest balance will be "conserved" until your low interest balance is paid off. The more low interest balance you put on the card, the longer the high interest balance lasts.

This system may seem counterintuitive, but that's how it works. The good news is, it's easy to avoid these complications by being mindful of your credit card usage and payment strategies.

Your credit rating

While a balance transfer is almost always a good idea for consumers with credit card debt, there are some additional points to consider before you make a move. To be eligible for a balance transfer you’ll have to apply for a new credit card with a balance transfer promotion. Many credit cards in Canada require a specific minimum credit score, so be sure to check what score is needed before you apply. (Read our ultimate guide to credit scores to learn how to find and read your score.)

If your score is not high enough, you may want to check out whether there are any low interest credit cards you may be eligible for.

Read more: Best low interest credit cards in Canada

The balance transfer fee

Another consideration is the transfer fee. Most credit cards charge a balance transfer fee of up to 3.99% of the amount you want to transfer. It’s important to be aware of this fee (which will be added to your overall amount owing) and ensure you are serious about paying off your transferred amount before you incur more debt.

If you have a good credit score and thus have the luxury of being picky, you may want to compare balance offers between cards to see if there is an option that doesn’t charge a transfer fee.

The promotional period

Promo periods vary and generally speaking, the longer the better. Credit card companies usually won’t let you extend the period, so make sure you can pay down the debt in the prescribed time.

The post-promotional period

Your new low interest rate only applies to the debt you transfer. New purchases will be subject to your new card’s usual interest rates, which likely hover around the 20% mark. Any debt you don’t pay off will also be charged interest at the regular interest rate.

Balance transfer cards aren't for everyone. Some applicants might not qualify for a credit card with 0% intro APR or a balance transfer offer. In these cases, there are options available, including secured loans:

• Lines of credit
• personal loans
• HELOC loans

Lines of credit

A line of credit in Canada is your financial Swiss Army knife - a flexible borrowing option that lets you access funds up to a predetermined limit whenever you need them. It's like having a financial safety net where you only pay interest on what you use, making it a popular choice for Canadians looking to manage unexpected expenses or consolidate higher-interest debts.

Pros and cons of personal lines of credit

Pros

• Lower interest rates than credit cards

• Flexible borrowing terms mean you use what you need, when you need it

• No balance transfer fees (origination fees may apply)

Cons

• Interest rates are variable and can change with the bank's rate

• May require a stronger credit score than some balance transfer cards

• Interest starts accruing immediately (if there's no 0% intro period)

Comparing personal lines of credit and balance transfer cards

Read more: All you need to know about a line of credit

Personal loans

Personal loans are another option to consider instead of a balance transfer. You borrow a fixed amount of money and repay it in regular installments over a set period. It's like a financial game plan with a clear finish line.

Pros and cons of personal loans

Pros

• Fixed interest rates mean no hidden surprises

• Set repayment schedule helps with budgeting

• Potentially lower interest rates than credit cards

Cons

• Less flexible than a line of credit

• No rewards or cashback like some credit cards offer

• May have loan origination fees

Comparing personal loans and balance transfer cards

Read more: Beginners Guide to Loans

HELOCs

A HELOC loan, or Home Equity Line of Credit, is like your house giving you a financial high-five, letting you borrow against the equity you've built up in your home. It's a flexible credit line that typically offers lower interest rates than credit cards, allowing you to tap into your home's value for things like debt consolidation, home improvements, or that dream vacation you've been eyeing.

Pros and cons of HELOCs

Pros

• Usually offers the lowest interest rates among these options

• Flexible borrowing, similar to a personal line of credit

Cons

• Puts your home at risk if you can't repay

• Requires home equity, which not everyone has

• Application process can be more involved than other options

Comparing HELOCs and balance transfer cards

Read more: Is using a HELOC a good idea?