Best low interest credit cards in Canada

Carrying a $5,000 balance at 19.99% costs roughly $83 a month in interest before you pay down a single dollar of principal. A low interest credit card in Canada cuts that rate to around 12.99%, saving you close to $29 every month on the same balance. Over a year, that gap adds up to more than $340. The cards on this list are built for one job: reducing what you pay to borrow. None of them earn points or cash back, and that is the point. If saving on interest is the priority, the are worth reviewing alongside this list, since several of the cards here carry promotional balance transfer rates that can accelerate debt repayment further.

Why a low interest credit card in Canada makes financial sense

The standard purchase rate on most Canadian credit cards sits at 19.99%. Low rate credit cards in Canada typically sit between 12.90% and 13.99%. That difference is not dramatic on a small balance, but it compounds quickly. A cardholder carrying $3,000 month over month pays roughly $50 in interest at 19.99% versus about $32 at 12.99%. The gap widens as the balance grows.

Low interest cards are not for everyone. If you pay your full statement balance every month, the purchase rate is irrelevant and a rewards card from the best credit cards in Canada will deliver more value. The case for a low rate card is specific: you carry a balance regularly, you want to reduce the cost of that balance, and you are not willing to pay a high annual fee to do it.

Best low interest credit card in Canada: MBNA True Line® Mastercard®

The MBNA True Line® Mastercard® is the only card on this list that combines a 12.99% purchase APR with no annual fee. That combination is rare among lowest interest credit cards in Canada. Every other card at this rate or lower charges at least $25 per year. For a cardholder who carries a modest balance and wants to keep costs simple, the absence of an annual fee means the interest savings are not partially offset by a holding cost.

The promotional offer adds real short-term value: 0% interest on balance transfers for 12 months from account opening. After the promotional window closes, the card reverts to its standard rate. The honest limitation here is that the card earns nothing on spending. There is no cash back, no points, and no travel perks. Cardholders who eventually pay off their balance and start spending freely will find the card offers no ongoing reward for that behaviour. At that point, switching to a rewards card makes more financial sense.

CIBC Select® Visa* Card: low rate with a first-year fee waiver

The CIBC Select® Visa* Card carries a 13.99% purchase APR and a $29 annual fee, with a 0% balance transfer promotional rate for up to 10 months. The first-year fee waiver softens the annual fee impact for new cardholders, but from year two onward the $29 fee is a real cost to factor in. At 13.99%, the purchase rate is one percentage point higher than the MBNA True Line Mastercard and the Scotiabank Value Visa, which matters if you carry a large balance over many months.

The balance transfer offer includes a 1% transfer fee, which means moving $5,000 costs $50 upfront. That fee is still far cheaper than a month of interest at 19.99%, but it is a cost that does not appear in the headline rate. The card has a $15,000 household income requirement, which is the only income threshold on this list. For most applicants that will not be a barrier, but it is worth confirming before applying.

Scotiabank Value® Visa* Card: low rate with a balance transfer option

The Scotiabank Value® Visa* Card matches the MBNA True Line Mastercard on purchase APR at 12.99%, but charges a $29 annual fee. That fee means the card only makes financial sense if the interest savings over the year exceed $29. On a $2,500 average monthly balance, the difference between 19.99% and 12.99% saves roughly $175 annually, so the fee is easily justified. On smaller balances, the math is tighter.

The balance transfer promotional rate of 0.99% for the first 9 months is competitive, though the 2% transfer fee is higher than the CIBC Select Visa’s 1% fee. Transferring $5,000 to the Scotiabank Value Visa costs $100 in transfer fees upfront. That is still a significant saving versus carrying the balance at 19.99%, but cardholders comparing the two Scotiabank and CIBC offers should factor the transfer fee into the total cost calculation.

TD Low Rate Visa* Card: 0% on purchases for the first 6 months

The TD Low Rate Visa* Card has the lowest ongoing purchase APR on this list at 12.90%, a fraction below the 12.99% offered by MBNA and Scotiabank. The $25 annual fee is also the lowest among the fee-bearing cards here. The card’s promotional offer is structured differently from the others: 0% interest on purchases for the first 6 months, rather than a balance transfer rate. That makes it a practical option for someone who needs to finance a large purchase and wants to spread payments over half a year without interest.

The card includes purchase security and extended warranty coverage, which adds modest practical value. Travel insurance is available as an optional add-on rather than a built-in benefit, so cardholders who travel should not assume coverage is included. The card earns no rewards, and there is no path to points or cash back regardless of how much you spend. For a cardholder who has paid off their balance and wants to start earning on spending, a different card will serve better.

How to choose between low rate credit cards in Canada

The right card depends on two numbers: your average monthly balance and how long you plan to carry it. If your balance is large and persistent, the ongoing purchase APR matters most. The MBNA True Line Mastercard and the Scotiabank Value Visa both sit at 12.99% with no income requirement, but only the MBNA card avoids an annual fee. If your balance is temporary and you want to pay it down aggressively, the promotional balance transfer offer becomes the deciding factor.

Annual fees on low interest cards are modest, but they are not trivial on a small balance. A $29 fee on a card saving you $15 a year in interest is a net loss. Run the numbers before committing. The stronger choice changes if your balance grows, if you consolidate multiple debts, or if you plan to use the card for a specific purchase rather than ongoing borrowing.

• No annual fee and a persistent balance: the MBNA True Line Mastercard is the clearest choice at 12.99% with no holding cost
• Balance transfer from a high-rate card: compare the CIBC Select Visa (1% transfer fee, 10 months at 0%) against the Scotiabank Value Visa (2% transfer fee, 9 months at 0.99%) based on your transfer amount
• Financing a planned purchase interest-free: the TD Low Rate Visa offers 0% on purchases for 6 months, which no other card on this list provides
• Lowest ongoing rate with a small annual fee: the TD Low Rate Visa at 12.90% edges out the others by a narrow margin for long-term balance carriers willing to pay $25 per year
• Household income under $15,000: the CIBC Select Visa is the only card here with a disclosed income requirement, so it may not be accessible to all applicants

Find the right low interest card for your balance

The cards above cover the main scenarios, but your actual savings depend on your specific balance size, payment habits, and whether you plan to transfer existing debt or carry new purchases. A card with a slightly higher rate but a longer promotional window may save more in total than the card with the lowest headline APR.

The credit card interest calculator lets you model the exact interest cost at different rates and balances, which makes the comparison concrete rather than approximate. Plug in your current balance and the rates from this page to see the annual saving before you apply.