Balance transfer credit cards offer a strategic way to pay down credit card debt faster by temporarily reducing or eliminating interest charges. Here are the best options available in Canada.
Best balance transfer cards in Canada
| Card | Promotional Rate | Promo Period | Regular Rate | Annual Fee | Balance Transfer Fee |
|---|---|---|---|---|---|
| MBNA True Line Mastercard | 0% | 12 months | 12.99% | $0 | 3% |
| BMO Preferred Rate Mastercard | 3.99% | 9 months | 13.99% | $29 | 1% |
| CIBC Select Visa | 0.99% | 10 months | 13.49% | $29 | 1% |
| Scotiabank Value Visa | 3.99% | 6 months | 12.99% | $29 | 1% |
| TD Emerald Flex Rate Visa | 1.99% | 6 months | 12.99% | $0 | 1% |
Rates and offers are subject to change. Verify current offers directly with the issuer.
How balance transfers work
Step 1: Apply for a balance transfer card
Choose a card with the lowest promotional rate and longest promotional period.
Step 2: Transfer your balance
Once approved, request a balance transfer from your new card issuer. Provide details of the debt you want to transfer (card number, amount). The new card issuer pays off your old card.
Step 3: Pay down the debt
Make consistent payments during the promotional period. Your goal is to eliminate as much of the debt as possible before the regular rate kicks in.
Step 4: Monitor the promotional period end date
Mark the date in your calendar. Have a plan for any remaining balance.
Balance transfer math
Transferring $5,000 from a 19.99% card to a 0% balance transfer card for 12 months:
| Scenario | Monthly Payment | Interest Paid | Balance After 12 Months |
|---|---|---|---|
| Stay on 19.99% card | $200/month | $672 | $2,942 |
| 0% balance transfer (3% fee) | $200/month | $0 + $150 fee | $2,650 |
| Savings with transfer | $522 | $292 lower balance |
Use our balance transfer calculator to model your specific situation.
Tips for a successful balance transfer
Pay more than the minimum
The promotional rate is temporary. Use it as an opportunity to aggressively pay down debt, not as a reason to make minimum payments.
Do not use the new card for purchases
New purchases on balance transfer cards often do not get the promotional rate. They may accrue interest at the regular rate immediately.
Do not run up the old card again
After transferring the balance, resist the temptation to use the freed-up credit on your old card. Cut it up or lock it away if necessary.
Set up automatic payments
Never miss a payment during the promotional period. Some issuers cancel the promotional rate if you miss a payment.
Know the end date
On the day the promotional period ends, any remaining balance jumps to the regular rate (12.99%–22.99%). Plan accordingly.
When a balance transfer makes sense
- You have credit card debt at a high interest rate (19.99%+)
- You can pay off a significant portion during the promotional period
- The balance transfer fee is less than the interest you would otherwise pay
- You have the discipline not to add new debt
When it does not make sense
- You will only make minimum payments (delaying the problem)
- You plan to keep spending on credit cards
- The balance transfer fee wipes out most of the interest savings
- Your credit score is too low to qualify
Alternatives to balance transfers
If you do not qualify for a balance transfer or need a different approach:
- Low-rate credit card — Some cards offer a permanent rate of 8.99%–12.99%
- Personal line of credit — Often 7%–10% interest
- Debt consolidation loan — Fixed-rate personal loan to combine debts
- Debt payoff strategies — Avalanche or snowball method to eliminate debts systematically
How to execute a balance transfer in Canada
Step 1: Identify your high-rate debt List all credit card balances, their interest rates, and minimum payments. Target the highest-rate balances first.
Step 2: Apply for a balance transfer card Choose a card with a promotional 0% (or low) rate for 6–12 months. Apply at least 2 weeks before your next credit card payment due date.
Step 3: Request the transfer Once approved, contact the new card issuer to initiate the transfer. Provide the account number and balance to transfer. Transfers take 5–10 business days.
Step 4: Keep the old card open (don’’t use it) Keep the old account open but don’’t add new charges — this would compound the problem. Set up an automatic minimum payment on the old card until it confirms $0 balance.
Step 5: Pay down the transferred balance aggressively Divide the full transferred balance by the number of months in the promotional period. That is your required monthly payment to clear the debt before the regular rate kicks in.
Frequently asked questions
What is the best balance transfer credit card in Canada? Several cards offer promotional balance transfer rates in Canada: MBNA True Line Mastercard (0% for 12 months, 3% transfer fee), Scotiabank Value Visa (0% for 10 months), and various CIBC and TD offers that appear periodically. The “best” depends on the transfer fee vs interest rate combination over your intended payoff timeline. Always calculate total cost (transfer fee + any interest during promo) before choosing.
Does a balance transfer hurt your credit score in Canada? Applying for a new card triggers a hard inquiry (small temporary score impact). Opening a new account increases total available credit, which can improve your credit utilization ratio. If done responsibly, balance transfers typically have a neutral-to-positive long-term credit impact. The key: do not run up new balances on the cards you transferred from.