Pay off debt faster with 0% interest

How Balance Transfers Work in Canada

A balance transfer moves outstanding debt from a high-interest credit card (typically 19.99–22.99% APR) to a new card offering a low or 0% promotional interest rate for a fixed period. During the promotional window, every payment you make goes toward reducing principal rather than paying interest — accelerating your path to becoming debt-free.

The Real Cost of High-Interest Credit Card Debt

Carrying $5,000 on a card at 19.99% APR costs approximately $1,000 in interest per year if only minimum payments are made. Transferring that balance to a 0% card for 12 months and making equal monthly payments of $417 eliminates the debt entirely with zero interest paid — a saving of over $700 compared to staying on a standard-rate card.

Balance Transfer Fees

Most Canadian balance transfer offers charge a one-time fee of 1–3% of the transferred amount. On a $5,000 balance, a 2% fee costs $100 — still far less than months of high-interest charges. Some cards waive the transfer fee entirely during promotional periods. Always confirm the transfer fee before applying.

What Happens After the Promotional Period

After the 0% window ends, the remaining balance reverts to the card's standard purchase interest rate — typically 19.99–22.99%. It is critical to either pay off the balance fully before this date, or have a plan for the remaining amount. Set calendar reminders for the end date when you apply.

Once your debt is cleared, explore your options for everyday earning on our no-fee card comparison or full Canadian credit card comparison.