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Balance transfer costs: look beyond the introductory rate

A promotional rate can create breathing room only if the full transfer and repayment terms fit your plan.

THE SHORT ANSWER

Compare the transfer fee, promotional period, post-promotion rate and required payments. A low introductory rate does not erase the transferred debt. Check eligibility and whether purchases or cash advances have different terms.

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Write down the whole offer

FCAC notes that balance transfers may involve fees and a temporary promotional interest rate. Record the exact start and end dates, any deadline for initiating the transfer and the conditions that can end the promotion. Compare the written offer you receive, not a rate from an older review.

Turn the promotion into a monthly target

Illustrative arithmetic: transferring $3,000 with a hypothetical 3% fee adds $90. If no interest or other charges applied for 12 months and the fee were added to the balance, clearing $3,090 over that period would require an average $257.50 monthly. Actual billing dates, required payments and fee treatment may differ. If that target does not fit, calculate what would remain when the promotion ends.

Keep purchase and transfer rules separate

Ask how new purchases would accrue interest and how payments would be allocated across balance types. Using the same account for everyday spending can make the plan harder to track. A transfer confirmation also matters: continue following the original account’s payment obligations until you verify what has actually been paid.

If the target payment is unrealistic

A longer promotion is not automatically a solution to a recurring shortfall. Compare a repayment plan and other appropriate options without assuming you need another credit application. You can choose a borrowing enquiry or ask about repayment support; one does not silently authorize the other.

Prepare for a conversation

  • Transfer amount and fee treatment.
  • The exact promotional end date.
  • Payment needed to clear the balance by that date.
  • Rate and expected balance after the promotion.

You do not need account numbers, a SIN, banking credentials or uploaded documents to start our enquiry.

Does a zero-percent headline mean the transfer is free?

Not necessarily. A fee, interest on other transaction types or charges after the promotional period can create a cost. Check the complete offer and your likely repayment pattern.

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