Balance transfers
Balance Transfer Credit Cards in Canada: What to Watch
Updated July 2026 · By CanadianBankNews Editorial Team
Quick answer
A balance transfer card may help if the promotional interest rate and transfer fee are lower than the interest being paid now, and the balance can be repaid before the promotion ends. It is not a long-term fix for overspending.
A balance transfer can temporarily reduce interest costs, but it works only when there is a clear repayment plan. The promotional rate, transfer fee, and end date all matter.
Canadian cards to compare
These examples from Canadian issuers help make the guide practical. They are not recommendations, and fees, rewards, eligibility, and offers can change.
| Card | Annual fee | Best fit | Compare these details | Issuer site |
|---|---|---|---|---|
Low-rate credit card options FCAC guide | Varies | Start with interest rate, fees, and repayment plan before comparing offers. | Promotional rate, balance-transfer fee, promo period, regular rate after the offer, and your repayment plan. | Apply on issuer site -> |
BMO CashBack Mastercard BMO | $0 annual fee | Compare current promotional terms carefully if considering a transfer. | Promotional rate, balance-transfer fee, promo period, regular rate after the offer, and your repayment plan. | Apply on issuer site -> |
Major bank low-rate cards Canadian banks | Varies | Compare transfer fee, promotional rate period, and regular purchase rate. | Promotional rate, balance-transfer fee, promo period, regular rate after the offer, and your repayment plan. | Apply on issuer site -> |
How balance transfers work
A card issuer may allow an existing credit card balance to be moved to a new card at a promotional interest rate for a limited time. The issuer may charge a transfer fee, and new purchases may not receive the same promotional treatment.
- Promotional interest rate
- Balance transfer fee
- Promotion end date
- Regular interest rate after the promotion
- Rules for new purchases and minimum payments
Calculate the real cost
Compare the transfer fee plus promotional interest against the interest you would otherwise pay. If the balance will not be repaid before the promotional period ends, include the regular rate in your calculation.
When to get advice
If balances are growing, minimum payments feel unmanageable, or multiple debts are involved, a non-profit credit counsellor or qualified financial professional may be more helpful than another credit card.
Pros
- Can reduce interest temporarily.
- May simplify repayment if used with a plan.
- Useful for disciplined short-term debt payoff.
Watch-outs
- Transfer fees can reduce savings.
- Promotional rates expire.
- New spending can make debt worse.
Frequently asked questions
Should I keep using the card after a balance transfer?
Usually it is safer to avoid new purchases until the transferred balance is repaid, unless you fully understand how the issuer treats new purchases.
Can a balance transfer hurt my credit score?
A new application can create a hard inquiry, and utilization can change. The effect depends on the full credit profile and repayment behavior.
Sources
Related credit card guides
This guide is educational information, not financial advice. Credit card fees, interest rates, rewards, insurance, and eligibility can change. Confirm current details with the issuer before applying.