Balance Transfer Credit Cards Canada: 0% Offers That Actually Save Money

Balance transfer credit cards let you move high-interest debt to a card with 0% APR for 6-12 months. For larger or mixed debt, see debt consolidation loans or compare all consolidation options. You pay a transfer fee of 1-3% upfront but stop paying interest during the promotional period. On a $5,000 balance at 19.99% APR, you save $573 in interest over 12 months by transferring to a 0% card and paying $450 monthly. The catch is you need good credit (660+ score) to qualify and must pay off the balance before the promotional period ends.

Top Balance Transfer Cards: 0% Offers & Fees Compared

CIBC Select Visa gives you the lowest total cost. You get 0% for 10 months with a 1% transfer fee. The annual fee of $29 gets waived in year one. You need $15,000 annual income to qualify. Transfer $5,000 and you pay just $50 upfront.

MBNA True Line Mastercard extends the promotional window to 12 months at 0% APR. The transfer fee jumps to 3%, but there’s no annual fee. That same $5,000 balance costs you $150 to transfer. You get an extra 10% off Avis and Budget car rentals as a bonus.

Scotia Momentum No Fee Visa cuts the promotional period to 6 months. The 2% transfer fee sits in the middle, and you pay zero annual fees. This card works best when you can aggressively pay down debt in half a year.

After the promotional period ends, all these cards revert to standard purchase rates between 19.99% and 23.99%. The promotional rate applies only to your transferred balance. New purchases start accruing interest at the regular rate immediately.

Ready to slash your interest payments? Compare personalized balance transfer offers from Canadian lenders now.

How Balance Transfers Work in Canada

You apply for a new credit card with a balance transfer offer. Once approved, you provide your old card details and the amount you want to transfer. The new card issuer pays off your old balance directly.

The process takes 3-4 weeks. Capital One reports standard processing times hit 4 weeks, though some transfers complete in 2 weeks. Complex situations stretch to 6 weeks. Keep making payments on your old card until you see the transfer post. Missing a payment while the transfer processes costs you late fees and interest.

The transfer fee hits your account immediately. Transfer $10,000 with a 3% fee and you start with a $10,300 balance. You’re still saving money because you’ve stopped the 19.99% interest bleeding. Your old card charges roughly $167 monthly in interest on that $10,000. The $300 fee pays for itself in under two months.

Here’s what catches people off guard: new purchases don’t get the 0% rate. Buy $500 in groceries on your new card and that $500 accumulates interest at 19.99% from day one. Use your debit card or a different credit card for new spending during the promotional period.

You can’t transfer balances between cards from the same bank. CIBC won’t let you move debt from one CIBC card to another. This rule applies across all Canadian issuers. You need debt from TD, RBC, Scotiabank, or another institution to transfer to your new CIBC card.

The new card’s credit limit caps your transfer amount. Get approved for a $8,000 limit and you can’t transfer $12,000. Most issuers require minimum transfers of $100.

Qualification Requirements: Credit Score, Income & Timing

Your credit score needs to hit 660 minimum. That’s the bottom of the “good credit” range that runs from 660 to 724. Premium cards with better perks push the requirement to 700 or higher.

Income requirements vary by card. Basic cards ask for $12,000 to $15,000 annual income. Tangerine Money-Back sets the bar at $12,000, while CIBC Select Visa wants $15,000. Premium cards demand $60,000 to $80,000 in annual income before they consider your application.

Your old account must be in good standing. Late payments in the past 90 days disqualify you. Current over-limit status blocks your application. Collection accounts tied to the debt you want to transfer kill your chances immediately.

The application triggers a hard credit inquiry. Your score drops 2-5 points temporarily. That inquiry stays on your credit report for two years but only affects your score for the first 12 months. Multiple credit applications in a short window compound the damage.

Opening the new card lowers your average account age. You’re adding a 0-month-old account to your credit profile. This metric recovers slowly as the new account ages.

Tyler from Winnipeg carried $9,200 across three cards. His 695 credit score qualified him for MBNA True Line. The hard inquiry dropped him to 692. Six months of on-time payments brought him back to 701. His debt load dropped to $4,100 during those six months.

You can’t transfer between cards from the same issuer. Own two TD cards with balances on both? You need a card from CIBC, Scotiabank, BMO, or another bank to consolidate them. This rule protects banks from simply moving debt around their own ecosystem.

Calculating Your Savings: Transfer Fees vs Interest Costs

A $5,000 balance at 19.99% APR costs you $573.57 in interest over 12 months when you pay $500 monthly. Transfer that balance to MBNA True Line at 0% for 12 months with a 3% fee. You pay $150 upfront. That’s $423.57 in savings.

CIBC Select Visa cuts your costs further. The 1% transfer fee costs just $50 on that same $5,000 balance. You get 10 months at 0%. Month 11 starts charging 19.99% on what’s left. Pay $530 monthly and you clear the balance in 10 months. Total cost: $50. Your savings: $523.57.

The math changes when you can only afford smaller payments. Take that $5,000 balance and pay $300 monthly instead. Without a transfer, you need 21 months to clear it. Interest totals $1,020.83.

Transfer to MBNA and pay that same $300 monthly. The first 12 months cost zero interest. Months 13-17 at 19.99% APR add $62.24 in interest. Add the $150 transfer fee. Total cost: $212.24. You save $808.59.

CIBC Select Visa in the same scenario costs $83.40 in interest for months 11-17 plus the $50 fee. Total: $133.40. Savings: $887.43.

The break-even point matters. Your transfer fee must be less than the interest you’d pay. Transfer $2,000 with a 3% fee ($60) to save money only if you’d pay more than $60 in interest on your current card. At 19.99% APR, you hit $60 in interest after roughly 4 months.

Larger balances magnify savings. Transfer $10,000 from a 19.99% card to MBNA’s 0% offer. The 3% fee costs $300. Paying $900 monthly, you’d spend $1,147.14 in interest without the transfer. With the transfer, you spend $300. That’s $847.14 in savings.

Most people underestimate how much interest they’re paying. Pull up your last credit card statement. Look for “interest charged this period.” Multiply that by 12. That’s your annual interest cost if nothing changes.

Calculate your exact savings. Use our balance transfer calculator to see which card saves you the most money.

Balance Transfer vs Debt Consolidation Loan

Balance transfers freeze interest at 0% for 6-12 months. Consolidation loans charge interest from day one but give you 2-5 years to repay. The right choice depends on your debt amount and monthly payment capacity.

Balance transfers work best for credit card debt under $15,000 you can eliminate in 12-21 months. You need good credit (660+) to qualify. Your new card’s credit limit restricts how much you can transfer. The short promotional window forces aggressive payments.

Personal loans handle larger amounts and multiple debt types. Consolidate credit cards, lines of credit, payday loans, and other unsecured debt. Borrow $25,000 at 12% APR over 4 years. Your payment runs $659 monthly. That rate beats the 19.99% on credit cards but costs more than a 0% balance transfer.

Your credit utilization ratio improves with balance transfers if the new card increases your total available credit. Owe $8,000 across cards with $10,000 total limit. That’s 80% utilization. Transfer to a new card with a $10,000 limit. Your total available credit jumps to $20,000. Utilization drops to 40%. That accounts for 30% of your credit score.

Loan origination fees run 1-8% of the borrowed amount. Borrow $15,000 with a 5% fee and you pay $750 upfront. Balance transfer fees typically sit at 1-3%. That’s $150-$450 on the same $15,000.

Interest rates on personal loans range from 4% to 36% depending on your credit. Prime borrowers with 750+ scores get rates under 8%. Borrowers with 650-680 scores pay 15-25%. Balance transfers offer 0% regardless of whether your score is 660 or 800.

Consolidation loans force structure. You get a fixed monthly payment and a definite end date. Balance transfers require discipline. Nothing stops you from making minimum payments and carrying a balance past the promotional period.

Aisha from Kelowna owed $18,500 across four credit cards and a $4,200 line of credit. Total: $22,700. Her credit limit on a new balance transfer card maxed at $12,000. She couldn’t consolidate everything with a balance transfer. She took a 5-year consolidation loan at 11.5% APR. Monthly payment: $501. She’s paying $7,360 in interest over 60 months but eliminated the stress of juggling multiple payments.

Balance transfers handle credit card debt exclusively. Consolidation loans tackle everything: medical bills, CRA tax debt, retail financing, private loans.

Choose a balance transfer when you have under $15,000 in credit card debt, can pay $800-$1,500 monthly, and want to save maximum interest. Pick a consolidation loan when you have multiple debt types, need more than 18 months to repay, or your credit limit won’t cover your total debt.

Common Mistakes That Cost You Money

Paying only the minimum wastes your 0% promotional period. Minimum payments cover less than 10% of your balance monthly. Transfer $6,000 to a card with 12 months at 0% and pay the $150 minimum. You clear just $1,800 during the promotional period. Month 13 arrives with $4,200 still on your card now accruing 21.99% interest.

Calculate your required monthly payment before you transfer. Divide your balance by the number of promotional months. A $7,500 balance with 10 months at 0% needs $750 monthly payments. Can’t afford that? Choose a card with a longer promotional period or transfer less.

Missing a single payment kills your promotional rate immediately. Banks don’t give second chances. Your 0% rate vanishes and the balance jumps to 19.99-23.99% overnight. You also pay a late fee of $35-$45.

Set up automatic payments for at least the minimum. Schedule them for 5 days before your due date to account for processing time. Banks report late payments when you’re 30 days past due, so you have a small buffer if your automatic payment fails.

Making new purchases on your balance transfer card costs you. New purchases don’t get the 0% rate. They accrue interest at the standard 19.99% rate from the day you make the purchase. Use a different card for new spending or pay cash.

Card issuers apply payments to promotional balances first. Buy $800 in new purchases and pay $1,000 that month. The $1,000 goes to your 0% transferred balance. Your $800 in new purchases sits there accumulating 19.99% interest until your transferred balance reaches zero.

Ignoring the transfer fee inflates your balance instantly. Transfer $8,000 with a 3% fee and your opening balance is $8,240. You need to account for that extra $240 in your payoff calculations.

Closing your old card immediately after transferring damages your credit. Your total available credit drops. Your credit utilization ratio jumps. Your average account age decreases if that old card was one of your oldest accounts. Keep old cards open with a $0 balance unless they charge annual fees.

Applying for multiple balance transfer cards in rapid succession hammers your credit score. Each application triggers a hard inquiry worth 2-5 points. Three applications in two months costs you 15 points. Wait 3-6 months between applications.

Transferring more than you can realistically repay sets you up for failure. Promotional periods feel long but disappear quickly. Transfer $14,000 hoping to “figure it out later.” At $500 monthly, you clear just $6,000 in 12 months. The remaining $8,000 starts accruing 22.99% interest.

Roberto from Mississauga transferred $11,300 to MBNA True Line in March 2025. He planned to pay $1,000 monthly. Unexpected car repairs in June forced him to pay $400 that month and $500 the next two months. By December, he’d paid down $9,200. His remaining $2,100 balance started accruing 21.99% interest in April 2026. He saved money overall but not as much as he’d planned.

How Balance Transfers Impact Your Credit Score

Applying for a balance transfer card triggers a hard inquiry. Your score drops 2-5 points immediately. That inquiry stays on your credit report for 2 years but only affects your score for 12 months. Apply for multiple cards and the damage compounds.

Opening a new account lowers your average account age. Add a brand new card to a profile with five accounts averaging 4 years old. Your average account age drops to 3.3 years. Account age represents 15% of your FICO score. The impact is small but measurable.

Your credit utilization ratio likely improves. Utilization measures how much credit you’re using versus how much you have available. This metric accounts for 30% of your credit score. Owe $9,000 with $12,000 in total credit limits. That’s 75% utilization. Open a new card with a $10,000 limit. Your total available credit jumps to $22,000. Utilization drops to 41%.

Maintaining the same debt load with more available credit looks better to credit bureaus. The improvement kicks in immediately when your new card reports to Equifax and TransUnion. Most issuers report within 30-45 days of account opening.

On-time payments during your promotional period rebuild your score. Payment history represents 35% of your credit score. Make 12 consecutive on-time payments and your score typically recovers from the initial hard inquiry within 3-6 months. Many people see their score increase beyond where it started.

Closing old cards after transferring backfires. You reduce your total available credit. Your utilization ratio climbs. You lose the age of that old account from your average account age calculation. Keep old cards open unless they charge annual fees you can’t justify.

Multiple balance transfers in short succession signal financial distress to lenders. Opening four new credit accounts in six months raises red flags. Space out applications by at least 3-6 months. Banks view multiple recent inquiries and new accounts as high-risk behavior.

Maxing out your new card hurts even at 0%. Transfer your entire credit limit and your utilization on that card hits 100%. Credit scoring models evaluate both overall utilization and per-card utilization. Keep your balance below 30% of your limit for optimal scoring. If you get approved for a $10,000 limit, transfer no more than $8,000.

Your score rebounds fastest when you keep old accounts open, make payments on time, and pay down the transferred balance. Vanessa from Halifax transferred $6,800 in August 2025 with a 682 credit score. The hard inquiry dropped her to 678. By February 2026, her score hit 704. She’d paid the balance down to $2,900 and made every payment early.

Missing a single payment doesn’t just void your promotional rate. It damages your credit score for years. That late payment stays on your credit report for 6 years in Canada. One 30-day late payment can drop a 700 score by 60-80 points.

Take control of your debt today. Get matched with the right balance transfer card for your situation and start saving on interest immediately.