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The best balance transfer credit cards in Canada for 2025

Jordann Brown, Personal Finance Contributor

June 25, 2025 | Fact checked by: Natasha Macmillan, Business Unit Director - Everyday Banking

If you’ve been struggling with credit card debt and find it challenging to pay off due to high monthly interest charges, consider using a balance transfer credit card to help consolidate what you owe. These cards offer ultra-low introductory interest rates, making it easier to regain control of your finances. Discover our selections for the best balance transfer credit cards in Canada.

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Canada’s best balance transfer credit cards at a glance

Our methodology: how we choose the best credit cards

Best balance transfer credit cards by category

Balance transfer credit card Best for Introductory interest rate Annual fee
(first year)
MBNA True Line Mastercard Best overall 0.00% for 12 months $0
CIBC Select Visa Best overall (honourable mention) 0.00% for 10 months $29
BMO Preferred Rate Mastercard Low interest 0.99% for 9 months $29
Scotiabank Momentum No-Fee Visa Card Cash back 0.00% for 6 months $0
Scotiabank Value Visa Students 0.99% for 9 months $0

Frequently asked questions

What is the best balance transfer credit card?


Can I do a balance transfer to a card from the same bank?


Do balance transfers hurt your credit score?


Do all providers offer balance transfers?


Which banks are offering 0% interest balance transfers?


A guide to balance transfers in Canada 

What is a balance transfer?

A balance transfer allows you to transfer your balance on an existing credit card to another card, typically one that offers a low introductory interest rate for a number of months. This is a popular strategy for managing credit card debt, and the main objective is to shift your outstanding balance from a card with a high interest rate to a new card with a lower interest rate. This allows you to pay off your balance more quickly since you pay less interest.

What to consider when choosing a balance transfer credit card

It might be tempting to head straight for a 0% interest balance transfer card, but there are some other factors to weigh when deciding which balance transfer card is best for you. Apart from the balance transfer interest rate, consider these:

  • Promotional period. The longer the promotional period, the more time you’ll have to repay your debt at a lower interest rate.
  • Balance transfer fee. Most balance transfer cards charge a one-time fee that’s a percentage of your balance, often 1%-3% of the balance you’re transferring. There may also be an annual fee, as with many credit cards. While nobody likes paying fees, balance transfer fees pale in comparison to a credit card’s regular interest rate.
  • How much you can transfer. Some cards allow you to transfer up to 100% of your credit limit, while others may only allow 50%.
  • Purchase and cash advance interest rates. Remember, the promotional interest rates offered are for balance transfers only. If you start carrying a balance again on purchases or cash advances, a low interest credit card could save you more money.
  • Qualification requirements. As with any other credit card, you’ll need to meet the card issuer’s credit score and income requirements to get approved. Balance transfer credit cards often have a lower credit requirement.

How much money can you save with a balance transfer?

Wondering how much money you can save with a balance transfer? Let’s say you hold a $5,000 balance on a credit card that charges an interest rate of 21.99% per annum. Here’s a comparison of what would happen if you continue on your regular credit card, versus transferring your debt to a balance transfer credit card.

  Rewards credit card Balance transfer card A Balance transfer card B
Interest rate (APR) 21.99% 0% (first 12 months), then 17.99% 0.99% (first 9 months), then 13.99%
Balance transfer fee N/A 3% = $150 1% = $50
Pay $500/month
Time to pay off 1 year 10 months 11 months
Interest paid $573.57 $0 $28.64
Total cost (interest + fee) $573.57 $0 + $150 = $150 $28.64 + $50 = $78.64
Pay $300/month
Time to pay off 1 year, 9 months 1 year, 5 months 1 year, 6 months
Interest paid $1,020.83 $62.24 $83.40
Total cost (interest + fee) $1,020.83 $62.24 + $150 = $212.24 $83.40 + $50 = $133.40

In all scenarios, you’ll pay much less interest and get out of debt much faster by switching to a balance transfer card.

However, while you’ll pay less interest by transferring your balance to Card A, its higher balance transfer fee means it costs more to pay off your balance just a month earlier than with Card B. It’s therefore important to review your budget and determine how much you can set aside to pay your balance each month, before deciding which balance transfer card is best for you.

How does a balance transfer work?

Once you have received your new balance transfer credit card, you can usually set up a balance transfer online through the provider’s website or app. However, depending on the bank or financial institution, you may need to call and speak with a customer service representative. Note that you can transfer balances between credit cards from different financial institutions, but in almost all cases, you can’t move balances between cards from the same bank.

It is important to note that moving a balance is not instant — it may take upwards of seven to10 business days for the proper approvals to go through and the transferred balance to appear on your new card. Keep in mind that all new purchases on a balance transfer card will be subject to the card’s purchase interest rate — the promotional rate only applies to the existing balance you transferred to the card and not anything added afterwards.

How much can I save with a balance transfer?

As shown in our calculations above, transferring a large credit card balance to a card with a lower interest rate can lead to significant savings, especially if you focus on paying off the balance during the promotional period — your only expense will be the balance transfer fee and annual fee, if any.

Actual savings may vary depending on factors such as your current monthly payment amounts, planned payment amounts on the new balance transfer card, timing, and card terms. Use our credit card interest calculator to see how much you'll save.

Do balance transfers hurt your credit score?

A balance transfer can generally help to improve your credit score over the long term. That’s because a balance transfer allows you to repay your outstanding credit card debts much faster, which in turn, will reduce your credit utilization ratio. Credit utilization, a major factor in determining your credit score, refers to the amount you owe on your credit card relative to your total credit limit. Generally, a lower ratio and smaller outstanding balances can lead to a better credit score.

However, in the process of undergoing a balance transfer, you may face a few temporary effects on your credit score. For example, when you apply for a new balance transfer credit card offering a lower interest rate, you’ll receive an inquiry on your credit report, similar to the process for applying for any new credit card. That said, applying for a new balance transfer card won’t have a lasting impact on your credit report. With consistent on-time payments, your credit score can fully recover in a few months.

What to do with your old credit card after a balance transfer

After you’ve transferred your balance to a new credit card, it’s generally best to leave your credit card account open even if you’re no longer using it. This is especially true if this was your only credit card or if you’ve had it for a long time, as the length of your credit history contributes to your credit score.

You can also continue to use your old credit card; that said, balance transfer credit cards tend to also offer lower interest on purchases and are likely a better choice if you tend to carry a balance. 

If your old credit card charges an annual fee but you won’t be using it anymore, then it may be worth cancelling that card if you hold other credit cards. Even if your credit score drops slightly, paying off your balance and having a healthy credit utilization on your new balance transfer card will have a greater positive impact on your credit standing.

Pros and cons of balance transfer credit cards

Benefits of balance transfer credit cards

  • Better interest rates. The major advantage of balance transfer credit cards is that their significantly lower interest rates compared to standard credit cards. This is especially true when you consider their promotional offers. Unlike the average interest rate of most credit cards (19-20%), certain balance transfer credit cards provide a period of zero interest.
  • Easier to pay off debt. Thanks to the remarkably low interest rates offered by balance transfer credit cards, you'll be able to focus entirely on paying off your existing debt without the added stress of accumulating more interest on the principal. However, it is critical to establish a reliable repayment plan to ensure that you don't collect interest once the promotional period ends.

Drawbacks of balance transfer credit cards

  • Not made for new purchases. While you can certainly use your balance transfer credit card to make new purchases, it's not recommended. The primary allure of the card – its ultra-low interest rate – only applies to transferred debt, not any new purchases/transactions. New purchases will be subject to the regular interest rate, not the promotional one. So until you've squared away your debt, you probably don't want to add to your existing balance.
  • Limited rewards. Unlike rewards cards designed to incentivize spending, balance transfer cards prioritize debt repayment. Because of this, you're unlikely to see many rewards or extra perks with these cards. Once you've paid off your outstanding balance and built up your credit, you might want to switch over to a rewards or cash back credit card to begin earning points or cash back.
  • Promotional interest rates are time sensitive. Although the ultra-low interest rate may seem like a dream come true to someone struggling to pay off credit card debt, it's important to remember that it is only valid for a specific duration. That means it’s imperative to ensure that you can clear your debt within that timeframe; otherwise, you could end up accumulating interest again.

Alternatives to a balance transfer credit card

If you prefer not to get a balance transfer credit card or if it doesn’t meet your needs for debt consolidation, one alternative is to seek out a line of credit and use it to pay off your credit card balance. Lines of credit typically charge lower interest rates than credit cards — usually based on the lender’s prime rate — but still higher than what would be offered on a balance transfer credit card. 

Another alternative to consider, especially if you have multiple high-interest debts, is a personal loan. Generally speaking, personal loan interest rates are lower than credit card interest rates. However, because you’ll get a lump sum of money, it’s important to be financially responsible and only borrow what you need to pay off your debts.  

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