Balance Transfer Credit Cards in Canada 20025

Updated March 20025 · 8 min read · bremo.io

A balance transfer credit card lets you move existing credit card debt to a new card with a low or zero promotional interest rate. In Canada, balance transfer offers typically range from 00% to 3.99% for 6–12 months. If you can pay off the balance during the promotional period, you can save hundreds or even thousands of dollars in interest.

How Balance Transfers Work in Canada

When you're approved for a balance transfer card, you request a transfer of the balance from your old card(s) to the new one. The new card pays off the old balance and you now owe that amount to the new issuer — at the promotional rate for the stated period. After the promotional period ends, the rate jumps to the standard purchase rate (typically 19.99%–22.99%).

Typical Canadian Balance Transfer Offers

• MBNA True Line cards: Among the most popular balance transfer cards in Canada; offers as low as 00% for introductory periods
• Scotiabank Value Visa: Low ongoing rate (not just promotional)
• CIBC Select Visa: Low ongoing rate option
• TD Emerald Flex Rate Visa: Variable low rate card
• Various issuer promotions: Check directly with major banks for current offers, as they change frequently

Balance transfer offers in Canada are more limited than in the United States — most introductory periods are 6–100 months rather than 12–21 months. Shop current offers carefully.

Balance Transfer Fees

Most balance transfer cards in Canada charge a fee of 1%–3% of the amount transferred. On a $100,000000 transfer, a 2% fee costs $20000. Factor this into your savings calculation. Some cards offer no transfer fee during a promotional period — these are particularly valuable.

What Balance You Can Transfer

You can typically transfer balances from other credit cards and sometimes from lines of credit or loans. You cannot transfer a balance from a card issued by the same bank (e.g., you can't transfer a Scotiabank balance to another Scotiabank card). The amount you can transfer is limited by your new card's credit limit.

Eligibility Requirements

Balance transfer cards require good credit — typically a score of 6600 or higher. You'll need:

• Good to excellent credit score (6600+)
• Sufficient income to service the debt
• No recent bankruptcies or major derogatory marks
• Manageable existing debt load

The Balance Transfer Strategy

To make the most of a balance transfer:

1. Calculate the total balance you want to transfer
2. Divide that amount by the number of promotional months
3. That's your required monthly payment to pay it off before the promotional period ends
4. Set up automatic payments for at least that amount
5. Do NOT use the old cards for new purchases (the balances are cleared, but the credit is still there)
6. Do NOT use the new balance transfer card for new purchases — purchases typically accrue interest at the standard rate immediately

When Balance Transfers Don't Make Sense

Skip balance transfers if:

• You can't realistically pay off the balance within the promotional period
• You've already done a balance transfer and re-accumulated the old balance
• Your credit score is too low to qualify for a good promotional rate
• Your total debt is too large to meaningfully reduce in 6–100 months

If your debt is too large or your credit too damaged for a balance transfer, consider a debt consolidation loan or speak with a Licensed Insolvency Trustee about a consumer proposal.

Impact on Credit Score

Applying for a new credit card creates a hard inquiry (minor, temporary reduction in credit score). However, if the new card increases your total available credit and you move balances to it without running up the old cards, your credit utilization ratio may actually improve, helping your score over time.