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Best Balance Transfer Credit Cards in 2022 in Canada

Balance transfer credit cards could help you pay off credit card debt at a lower interest rate. Read on for some of the best Balance Transfer Credit Cards in Canada.

13 October 2022Tassie Milne 4 min read
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Carrying around expensive credit card debt? You’re not alone. Credit card debt among Canadians is rising, and you may be thinking of ways to lessen your monthly payments and becoming debt-free.

While it may seem counter-intuitive to think of using a new credit card to help manage your debt, a balance transfer credit card can actually help in many situations. You can transfer your existing balance to a new card with a much lower interest rate to pay off credit card debt faster. Sometimes, the credit card company will even throw in an interest-free grace period or additional points or rewards. Learn more about how balance transfer credit cards work.

When deciding if a balance transfer credit card may be right for you, be sure to review the terms (interest rate, grace period, rewards) and remember that you’re still required to make monthly payments on the transferred balance. There may also be a balance transfer fee (usually 1-5% of the total balance) charged when you make the transfer, and some may require security funds.

In Canada, there are many different balance transfer credit cards to choose from, but not all credit cards are created equal. Here’s a more in-depth look at some of the best balance transfer credit cards in Canada in 2022.

A viable option for a balance transfer credit card is the BMO Preferred Rate Mastercard. The card offers a 0.99% introductory interest rate on balance transfers for nine months, with a 2% transfer fee. The annual fee is $20, but it’s waived for the first year. If you also have a BMO Performance chequing account, you can get the $20 rebate every year.

Other features of the BMO Preferred Rate Mastercard:

  • Add another cardholder for free
  • Extended warranty and purchase protection for purchases bought with the card
  • 24/7 emergency support

With its 0% introductory interest rate on Cash Advances for the first six months, the Scotiabank Value Visa could help you save on interest. After the introductory period, the interest rate on cash advances is 12.99%, as with all purchases. The annual fee is $29 – but it’s waived for the first year.

Other features of the Scotiabank Value Visa:

  • Add supplementary cards for free
  • Save up to 25% off base rates at participating AVIS and Budget locations when you pay with your card
  • Add optional Insurance: Scotia Credit Card Protection

Build, or rebuild your credit with Capital One’s Low Rate Guaranteed Mastercard. With this card, you can enjoy guaranteed credit card approval and a 14.9% annual interest rate on purchases and balance transfers. Cash advances, however, are a little steeper at 21.9%, and the annual fee is $79. Since this is a guaranteed card, security funds may be required.

Other features of the Capital One Low Rate Guaranteed Mastercard:

  • Zero Liability protection, so you won’t be held responsible for unauthorized use of your card
  • Price Protection Service (if an item you like goes on sale)
  • Purchase Assurance (most personal items are protected that are bought with the card)
  • Extended warranty

The MBNA True Line Mastercard is a contender for the best balance transfer credit card in 2022. It has the longest promotional balance transfer period on our list at 12 months and offers 0% interest during that time. However, balances must be transferred within 90 days of the account opening.

Other features of the MBNA True Line Mastercard:

  • 12.99% interest rate on purchases
  • No annual fee
  • Apple Pay compatibility
  • Add up to nine additional authorized users
  • Eligible for the MBA Payment Plan

The CIBC Select Visa offers 0% interest for ten months on credit card balance transfers and a very attractive balance transfer fee of 1%. The card comes with a 13.99% interest rate on purchases and cash advances and a $29 annual fee (waived the first year).

Other features of the CIBC Select Visa:

  • Connect to Journie Rewards to save up to 7 cents per litre at select gas stations
  • Up to $100,000 coverage in common carrier accident insurance
  • Option to add travel and payment protection insurance to your card

If you like cashback credit cards, the Tangerine World Mastercard is an option for transferring a credit card balance. There is currently an additional cashback incentive for signing up –15% on up to $1,000 spent in the first two months. Transfer your balances during your first 30 days and pay an interest rate of $1.95% on the transferred balance for the first six months (it’s 19.95% after that). A balance transfer fee of 1% on the amount transferred will apply as well, but at least there is no annual fee.

Other features of the Tangerine World Mastercard:

  • Unlimited cashback
  • Mastercard Travel Rewards and other Mastercard travel benefits
  • Rental Car Collision insurance
  • Loss Damage Insurance
  • Free cards for authorized users on your accounts

Looking for a good balance transfer credit card with Air Miles benefits? Look no further than the BMO Air Miles Mastercard. This credit card features a 1% balance transfer fee and a 9-month promotional period to pay off your balance. Right now, there is also a sign-up bonus of 800 Air Miles ($80 in value).

Other features of the BMO Air Miles Mastercard:

  • Use Air Miles toward Cash, Dream, or Travel rewards
  • Extended warranty and purchase protection
  • Discounts on car rentals

Finding the right balance transfer credit card to help you get out of debt sooner can have lasting positive impacts on your finances. Paying off debt can give you peace of mind, help improve your credit score, and strengthen your credit history. With cards like these available in Canada, it may make sense for you to opt for a balance transfer card instead of a traditional credit card to pay off debt.

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Tassie Milne Image

Written by Tassie Milne

General Manager - ClearScore Canada

Tassie heads up ClearScore Canada. She lives in Toronto with her husband and two young boys. In her free time, she can be found at the family lake house or playing ball hockey.