BMO Preferred Rate MasterCard Review: Is the 0.99% Balance Transfer Worth It?

Did the 0.99% introductory rate on the BMO Preferred Rate MasterCard catch your eye? Perfect. That’s the hook, but as your FinPro, I’m here to take you through the fine print. You’ve seen the P1 highlights; now it’s time for the complete, transparent breakdown.

In this detailed review, we’re digging into every single aspect: the *exact* cost of that balance transfer, the long-term fees, the hidden drawbacks, and the documents you’ll need. This card isn’t for everyone—in fact, it’s the *wrong* card for a lot of people.

By the end of this guide, you’ll know for sure if this is the smart financial tool you need, or a distraction from a rewards card you’d rather have.

A Deep Dive into the Card’s Features

The BMO Preferred Rate MasterCard isn’t a “perks” card. It’s a “tool” card. Its features are designed for one purpose: to save you money on interest charges. Let’s break down how it works.

The 0.99% Balance Transfer Offer (The Main Hook)

This is the card’s main draw. When you’re approved, you get a 0.99% introductory interest rate for 9 months on balances you transfer from other (non-BMO) credit cards.

Let’s be very clear about how this works, including the fine print:

• The 2% Fee: This is the most important detail. This offer is not free. BMO charges a one-time fee of 2% on the amount you transfer. This fee is added to your balance right away. For example, if you transfer $10,000 of debt, a $200 fee is added, and your new balance will be $10,200.
• The 9-Month Window: The 0.99% rate applies for 9 full months, giving you a crucial “breathing room” period. During this time, your payments go almost entirely toward paying down your *principal* debt, not just servicing the high interest.
• The “Why”: Is the 2% fee worth it? Let’s do the math. If that $10,000 was on a card charging 20.99%, you’d pay roughly $1,750 in interest over 9 months. Paying a $200 fee to save $1,750 is a massive win.

This feature is a powerful strategy to get out of debt, but only if you factor in the 2% fee and have a plan to pay down as much as possible *before* the 9 months are up.

The 13.99% Standard Purchase Rate (The Long-Term Value)

This is the card’s real identity after the promo ends. Most Canadian rewards cards (like Aeroplan or cash back cards) have a standard interest rate (APR) of 20.99%, 21.99%, or even higher.

The 13.99% rate on this card is its permanent, long-term feature. This is your “safety net.”

Life in Canada is expensive, and “life happens.” Your car needs new winter tires ($1,200). Your furnace breaks in February ($500 for a repair). You have to put it on your credit card and know you can’t pay it all off by the due date.

On a 20.99% card, that $1,200 balance would be stressful. On this 13.99% card, the interest charges are significantly lower, giving you a much more manageable path to pay it off without the same punishing fees. This feature is for people who know that, 1-2 times a year, they might need to carry a balance for a month or two.

The 15.99% Cash Advance Rate

First, my “FinPro” advice: Never, ever take a cash advance from a credit card unless it is a true emergency. Interest starts accumulating the *second* you take the money out, and there are often extra fees.

That said, this card’s 15.99% rate is, again, a safety net. Most rewards cards charge 22.99% or 23.99% for cash advances. In a dire situation, this “less-bad” rate is another form of protection.

Purchase Protection & Extended Warranty

Even though this isn’t a perks card, it comes with two valuable insurance benefits:

• Purchase Protection: If you buy a new item (like a phone or a TV) and it’s stolen or accidentally damaged within 90 days, this insurance can cover the cost of repair or replacement.
• Extended Warranty: This feature automatically doubles the manufacturer’s warranty on an item, up to one additional year.

The Key Condition: For this coverage to be valid, you must have charged the full price of the item to your BMO Preferred Rate MasterCard.

All Fees and Costs at a Glance

Transparency is everything. Here is the simple, non-negotiable breakdown of what this card costs. (Data pulled directly from BMO, November 2025).

The Drawbacks: What to Know Before You Apply

This card is a specialized tool, which means it has very clear drawbacks. Be honest with yourself and see if any of these are deal-breakers.

There Are Absolutely Zero Rewards

This is the most important drawback. You will not earn any cash back, any points, or any travel miles. Zero. This card’s “reward” is the interest you *don’t* pay.

This means if you pay your balance in full every single month, this is the wrong card for you. You would be leaving free money on the table by not using a no-fee cash back card.

The 2.5% Foreign Transaction (FX) Fee

This is standard for most “Big 5” bank cards, but it’s a critical drawback. When you buy something in USD, EUR, or any other currency (even online), BMO will charge you an extra 2.5% fee on the converted amount. This fee instantly wipes out any benefit. Do not take this card with you on vacation to the U.S. or Europe.

The 2% Balance Transfer Fee Isn’t “Free”

As mentioned, you must do the math. If you’re transferring $2,000, the $40 fee is small. If you’re transferring $15,000, the $300 fee is a real cost you need to plan for. Some smaller credit unions or fintechs offer 0% BT promos with no fee, but BMO is betting you’ll pay for the convenience and trust of a “Big 5” bank.

The $29 Annual Fee (After Year One)

The “first year free” is a great incentive. But in 12 months, that $29 charge will appear on your statement. You must decide if the “safety net” of a 13.99% interest rate is worth $29 a year to you. For many people, it absolutely is. For others who are disciplined with their budget, it’s an unnecessary cost.

Who Can Apply for This Card?

The requirements for this card are more accessible than for premium rewards cards.

BMO’s official criteria are:

• You must be a Canadian resident.
• You must be the age of majority in your province or territory (18 or 19 years old).

That’s it. BMO does not state a minimum income requirement for this card, making it accessible to students, part-time workers, and anyone who doesn’t meet the $80,000+ hurdles of “World Elite” cards. However, you will still need to have a “fair” to “good” credit score. BMO will perform a credit check, and they will decline your application if you have a history of missed payments.

How to Apply: A Step-by-Step Guide

The online application is the fastest way. The process is simple and takes about 10-15 minutes.

1. Get Your Info Ready: You’ll need your Social Insurance Number (SIN), your home address (and previous address if you’ve moved recently), and your employment and income details.
2. Visit the BMO Secure Site: Navigate to the official BMO Preferred Rate MasterCard application page.
   VISIT THE CARD SITE

   

3. Complete the Application: Fill in the form accurately. You will be asked about the balance transfer at this stage—be ready with the card number and estimated amount you wish to transfer.
4. Consent to a Credit Check: You must agree to let BMO pull your credit report from a bureau (like TransUnion or Equifax).
5. Get Your Decision: Many applications receive an instant decision (approved, pending, or declined). If “pending,” BMO may need a few business days to verify your information.
6. Receive Your Card: Once approved, your new card will arrive by mail within 7-10 business days.

The BMO Preferred Rate vs. Its Alternatives

How does this card stack up against other options? The answer depends entirely on your spending habits.

vs. A No-Fee Cash Back Card (e.g., Simplii Financial Cash Back Visa)

This is the classic “Perks vs. Protection” debate.

• The Simplii Visa: Offers 4% cash back on restaurants, 1.5% on gas/groceries, and no annual fee. Its interest rate is 20.99%.
• The BMO Card: Offers 0% cash back and a $29 annual fee (after year one). Its interest rate is 13.99%.

The Verdict: If you pay your balance in full every month, the Simplii card is 100% the better choice. If you carry a balance, the BMO card is the smarter choice. The interest you save at 13.99% will be *far* more than any cash back you could possibly earn.

vs. Another Low-Interest Card (e.g., CIBC Select Visa)

This is a head-to-head competition.

• The CIBC Select Visa: Also offers a 13.99% purchase rate, a $29 annual fee (often waived first year), and a 10-month 0% balance transfer promo.

The Verdict: These cards are nearly identical. The choice between them comes down to: 1) Which bank do you prefer? and 2) Which promo is *slightly* better today? BMO’s 0.99% rate vs. CIBC’s 0% rate is almost no difference, but CIBC’s 10 months is one month longer than BMO’s 9. Your decision here would likely be based on which bank you already have a relationship with.

Frequently Asked Questions (FAQ)

What will my credit limit be?

BMO states the minimum credit limit for this card is $1,000. Your specific limit will be determined by your credit score and stated income. Don’t expect a $20,000 limit, but you will be given a limit that BMO feels is responsible.

What happens to my balance after the 9-month promo ends?

Any remaining balance from your transfer will automatically switch from the 0.99% rate to the card’s standard 13.99% rate. You will not be charged “back-interest” (like some retail store cards), but you will start paying the standard rate on whatever is left.

Does this card have any travel insurance?

No. None. It has Purchase Protection for items, but it has no travel medical, trip cancellation, or lost baggage insurance. Do not rely on this card for booking any travel.

Can I get this card if I have bad credit?

Probably not. This card is “low-interest,” not “credit-builder.” It is designed for people with fair-to-good credit who want to manage debt, not for those who are actively rebuilding from a consumer proposal or bankruptcy. You will still need to qualify.

Is the 2% balance transfer fee worth it?

Yes, in almost all cases. A one-time 2% fee is far, far cheaper than paying 20.99% interest for months on end. You just need to include that $200 (on a $10,000 transfer) in your calculations. It’s the “cost of admission” to the 9-month 0.99% promo.

The Final Verdict: Is This Card for You?

After this deep dive, the conclusion is crystal clear. The BMO Preferred Rate MasterCard is a purpose-built tool. It does one job, and it does it very well.

This Card Is PERFECT For You If:

• You are currently carrying high-interest debt on other store or rewards cards (e.g., 19.99% or higher).
• You need a disciplined plan and a 9-month “breathing room” to aggressively pay down your principal.
• You have a fluctuating income and want a “safety net” card for emergencies, knowing the 13.99% rate won’t destroy your budget.
• You don’t care about rewards and just want the lowest possible interest rate from a major, trusted Canadian bank.

This Card Is WRONG For You If:

• You pay your balance in full every single month. (You are giving up hundreds of dollars in free cash back by not using a rewards card).
• You are a “rate chaser” who wants a 0% transfer with a 0% fee. (This card has a 2% fee).
• You want *any* perks at all, such as cash back, travel points, or insurance.
• You do a lot of shopping in the U.S. or other foreign currencies. (That 2.5% FX fee will hurt).

Ultimately, this card is for the “Debt-Crusher” and the “Safety-Net Seeker.” If you’re a “Rewards-Hunter,” you need to look elsewhere.