Best balance transfer cards in Canada

As the cost of living rises, many Canadians are leaning on credit to make ends meet or to maintain their standard of living. 

In the second quarter of 2025, the average consumer carried $22,147 in non-mortgage debt, and nearly 1.4 million Canadians missed a credit payment, according to the credit bureau Equifax.

Much of that debt sits on credit cards, and for good reason: they’re convenient to use and relatively easy to obtain. But they’re also one of the most expensive forms of consumer financing, with typical annual interest rates ranging from 10% to 25%. 

For those who carry a balance from month to month, however, credit card debt can quickly snowball.

If you’re burdened by mounting credit card bills, balance transfer credit cards can offer a temporary lifeline in the form of lower interest rates and extra time to get your financial house in order. Used wisely, they can be an effective tool for managing debt and paying off balances faster.

How balance transfer credit cards work

The defining feature of a balance transfer card is its low-interest introductory offer: for a limited time, the cardholder can move debt from existing accounts onto the new card and pay as little as 0% to 3% interest on the transferred balance. 

In most cases, the debt being moved is from one or more of the cardholder’s other credit cards.

These promotional rates typically last six to 12 months after the card is issued. 

When the offer expires, no further balances can be transferred, and the interest rate on the transferred balance rises — usually to the card’s regular purchase rate, often between 10% and 25%. 

A one-time transfer fee also applies, typically 1% to 5% of the amount transferred.

Learn more: A guide to Canadian credit card tiers: MasterCard vs. Visa | Rates.ca

The benefits of switching to a balance transfer card

The potential savings of switching to a low-interest balance transfer card can be substantial.

For example, carrying a $1,000 balance on a card with a 20% annual interest rate costs about $200 in yearly interest. 

The same balance transferred to a card with a 1% promotional rate and a 1% transfer fee would cost about $20 in total — a savings of $180. 

The savings only grow with larger transfers, roughly $900 on a $5,000 balance or $1,800 on $10,000.

Using a balance transfer card to consolidate multiple credit card balances can also simplify debt management by reducing the number of minimum payments and due dates to track.

Finally, balance transfer cards can buy consumers time to get organized.

“A balance transfer card can give you a bit of breathing room,” says Stacy Yanchuk Oleksy, CEO of Money Mentors, a credit counselling agency based in Calgary. “It buys you some time to figure out what’s going on with your finances and, ideally, to come up with a plan to pay off your debt.” 

What to look for in a balance transfer card

When evaluating a balance transfer card, consider the following factors:

- Introductory interest rate: Rates of 1% to 3% are typical.  
- Promotional period: A longer term offers greater savings and flexibility when paying off the balance. Nine months from the date of issue is common.  
- Balance transfer fee: Issuers charge up to 5% of the transferred amount, though 1% to 3% is more common. This fee is added to your balance and accrues interest.  
- Transfer window: Some cards allow transfers for as long as the introductory rate applies, while others set earlier deadlines—often within 90 days of opening the account.  
- Post-promotion rate: Know the rate that will apply to any unpaid transferred balance once the promotional period ends.

Related: Which credit card program in Canada is the best for you?

The risks of balance-transfer cards 

Despite their advantages, balance transfer cards can enable further debt if misused. Here are a few risks of switching to a balance transfer card. 

They may help you create more debt

Balance transfer cards are meant to help you pay off existing debt, not free up space to accrue more debt. But sometimes, it can lead to that. 

“The problem comes when you transfer a balance to a new card but continue to use your old card,” says Yanchuk Oleksy.

The same risk applies when making new purchases on the balance transfer card before the existing debt is paid off. In some cases, consumers take out one balance transfer card to pay off another—without addressing the underlying causes of their debt.

The perks last as long as you can make regular payments 

Promotional rates apply only if the account remains in good standing. Miss one or two minimum payments, and your transferred balance will immediately accrue interest at the standard rate for balance transfers — often the same as the purchase rate, typically between 13% and 28%. 

Note that balance transfer fees are non-refundable, even if you lose the promotional rate shortly after opening the card.

They come with finicky fine print

Before signing up for a balance transfer offer, review the full cardholder agreement on the issuer’s website. Pay special attention to the sections on interest rates and payment terms so you don’t end up voiding the introductory offer. 

You should also check how payments are applied. Some issuers distribute payments proportionally among different balances, while others apply payments to transferred balances first. In that case, new purchases or cash advances may continue to accrue higher interest until the transferred balance is cleared.

Balance transfer cards are a tool — not a solution

Balance transfer cards can help reduce the cost of carrying debt, but they’re not a cure-all. Real progress comes from addressing the root causes of debt, developing a repayment plan, and sticking to it.

“A balance transfer card might be the right option when you’re facing a temporary financial issue and you have a plan to get out of your debt,” Yanchuk Oleksy says. 

But unless you use it diligently, a balance transfer credit card could help you fall deeper into debt rather than climbing out of it.

Yanchuk Oleksy advises seeking help at the first sign of trouble. Members of Credit Counselling Canada, an association of non-profit credit counselling agencies, offer free confidential consultations and additional services for a nominal fee, which may be waived for clients unable to pay.

The best balance transfer cards in Canada

MBNA True Line Mastercard 

Named the Best Balance Transfer Card of 2025 by Rates.ca, the MBNA True Line Mastercard offers a standout offer: a 0% annual interest rate for 12 months on balance transfers made within 90 days of opening the account. A 3% transfer fee applies. The card has no annual fee and carries a low 12.99% rate on eligible purchases.

The CIBC Select Visa 

This card offers a 0% promotional rate on balance transfers for the first 10 months, with a transfer fee of just 1%. Transfers are limited to half of the approved credit limit, and the card’s $29 annual fee is rebated for the first two years. The regular purchase rate is 13.99%, and cardholders can earn discounts on gasoline at select retailers.

Tangerine Money-Back Credit Card 

Ideal for consumers with lower credit scores—who may have difficulty qualifying for premium offers — the Tangerine Money-Back Credit Card offers a 1.95% promotional rate on balance transfers for six months, with a 1% transfer fee. The card also includes zero-liability fraud protection, extended warranty coverage on purchases, and up to 2% cash back on select spending categories. There’s no annual fee.

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