Best Balance Transfer Credit Cards in Canada 2023

Last updated: June 13, 2023

Written by
Rachel Cribby

Why you can trust us

The team at WealthRocket only recommends products and services that we would use ourselves and that we believe will provide value to our readers. However, we advocate for you to continue to do your own research and make educated decisions.

Holding a balance transfer credit card over a laptop

Most of us are familiar with the common kinds of credit cards on the market and how they can help us meet our financial goals. Whether it’s a travel credit card that offers free perks and insurance benefits or a cash back credit card that helps you earn while you spend, it seems like every credit card has its unique purpose.

But what about the ever-so-mysterious balance transfer card? While not as flashy or enticing as the other card types out there, balance transfer credit cards serve a very important (if a tad utilitarian) function.

This function, though, comes with a catch — to get the most out of your balance transfer card, you need to know how to use them.

CIBC Select Visa

Our Review

Apply Now

Welcome Offer 0% interest and 1% transfer fee for first 10 months
Annual Fee $29 (first year waived)
Interest Rates Purchase & Cash Advance: 13.99%
Recommended Credit 670+

BMO Preferred Rate Mastercard

Apply Now

Welcome Offer 0.99% intro interest rate on balance transfers & 2% transfer fee for first 9 months
Annual Fee $20
Regular APR/Interest Rates 12.99%
Recommended Credit 660 - 724

Scotiabank Value Visa Card

Our Review

Apply Now

Welcome Offer 0% interest on Cash Advances for first 6 months
Annual Fee $29
Regular APR Purchases: 12.99%, Cash Advances: 12.99%
Recommended Credit 560 - 659

What is a balance transfer credit card?

If you’re staring at your screen quizzically, desperately hoping that somebody will tell you what a balance transfer is, hang tight. We’re about to tell you about a very effective but seldom discussed way to kill credit card debt.

A balance transfer credit card refers to a credit card that offers an extremely low interest rate for a set promotional period.

This period is often for six months or one year, and sometimes up to 18 months. This promotional rate is usually 3.99% or lower, although it can sometimes be as low as 0.00% interest.

The idea is to transfer your credit card balance from your credit card with a high regular interest rate and pay the balance off on your new card before the interest rate promotion expires.

It’s simply easier to pay off your credit card balance when you are not paying up to hundreds of dollars of interest payments every month.

How does a balance transfer credit card work?

Balance transfer credit cards sound pretty great so far, right? A credit card with a low or non-existent interest rate designed to make paying off your balance easier? While there aren’t catches per se, there are some things you need to know before you shout, “sign me up!”

Balance fee and annual fee

When you take advantage of a balance transfer credit card, you are charged a fee in the amount of money you transfer.

For example, if you transfer a credit card balance of $10,000 with a fee of 1%, you will be charged $100.

Most balance transfer credit cards will also come with some form of an annual fee.

Interest rate expiration

As we mentioned earlier, if you do not pay off your transferred balance before the end of the promotional rate period, you will be subject to regular interest rates.

Card qualifications

In order to make use of a balance credit card, you will need to have your application approved. This means having a decent credit score and meeting the minimum income requirement for the card.

How to perform a balance transfer

If you would like to take advantage of a balance transfer offer, you will first need to apply for the card.

Upon application approval, you will then need to request the transfer. This action is typically done by cheque, online, or by telephone.

This will involve giving your new account information to your existing account so that they can perform the transfer.

If you perform this action by cheque, you may have the option to make the cheque made out in your name. Just make sure it’s not processed as a cash advance.

The best balance transfer credit cards in Canada: 4 options

Canadian credit cardholders have their fair share of options when it comes to balance transfer cards, with standout options including:

1. CIBC Select Visa

Promotional interest rate: 0.00% for 10 months
Regular interest rate: 13.99%
Transfer fee: one-time fee of 1% of balance
Annual fee: $29

The CIBC Select Visa is commonly heralded as the holy grail of balance transfer credit cards, and with good reason!

This card stands out for offering zero interest on any transferred balance for ten months.

If you cannot pay off your balance in these ten months, you will be subject to the card’s 13.99% interest rate, which is still reasonable compared to the average interest rate of 19.99%.

You will only be able to transfer 50% of your credit limit with this card. It is also only available for new cardholders who apply online.