Who this card is for
A good fit if you…
- People who will transfer a balance from another bank and pay it down inside 18 months, after adding the 3% transfer fee to the math.
- BMO customers who hold, or will open, a Performance chequing account so the $29 annual fee is rebated every year, not only in year one.
- Households that already carry a purchase balance and want 13.99% instead of a typical 20%-class rewards rate.
- Anyone who needs a Mastercard for Costco Canada while they pay a balance down. The TD and CIBC low-rate cards are Visas.
Skip it if you…
- Anyone who pays the statement in full every month. A 13.99% purchase rate saves nothing if you never pay interest. BMO CashBack Mastercard is $0 with grocery cash back for that habit.
- People who wanted 0% on new purchases. This intro rate is on balance transfers. TD Low Rate Visa puts 0% on purchases for six months.
- Shoppers chasing cash back, Blue Rewards, or Eclipse points. There is no rewards program.
- Anyone looking for a large signup bonus. The only fixed dollar amount in the offer is the $29 annual fee waived in year one. The 0% rate is interest relief on a transfer, and the 3% fee still costs money.
Pros and cons
Pros
- Purchases are 13.99%, below the rate on a typical Canadian rewards card.
- New accounts opened from applications on or after September 15, 2026 get 0% on balance transfers for 18 months. The transfer fee is 3% (for example, $30 per $1,000), and the minimum transfer is $100.
- The $29 annual fee is waived in year one, and rebated every year with a BMO Performance chequing account.
- Insurance is extended warranty (it doubles the manufacturer’s warranty by up to one extra year) and purchase security for 90 days. There is no travel insurance, which is the right shape for a rate card.
- Mastercard acceptance includes Costco Canada.
Cons
- There is no rewards program. You are not earning grocery cash back while you pay the balance down.
- The 3% transfer fee is due even at 0% interest. On a $1,000 transfer that is $30; on $5,000 it is $150.
- When the 18 months end, any remaining transferred balance is charged the 15.99% cash advance rate. Do not use the card for cash advances and call that Preferred.
- Foreign-currency purchases convert at the payment network’s rate plus 2.50%. This is a domestic rate card, not a no-FX travel card.
- The offer is for new accounts, from applications on or after September 15, 2026. It is not a reason to carry a balance forever.
Fees and value: is the annual fee worth it?
First-year snapshot (estimate)
- Annual fee
- $29
- Estimated welcome bonus value
- $29 (first-year annual fee waiver)
- Bonus minus fee (estimate)
- $0
This is a simple comparison of the estimated welcome-bonus value against the annual fee. It ignores rewards on spending, credits you have to remember to use, and interest if you carry a balance. Offers change — verify with the issuer.
The annual fee is $29. Year one waives it.
Every year after that, a BMO Performance chequing account rebates it; without that account, budget $29 from year two. The welcome is that waiver plus 0% on balance transfers for 18 months, not a cash bonus.
A $5,000 transfer costs $150 at the 3% fee before you save any interest. Year two is $29, or $0 with Performance chequing, against a 13.99% purchase rate that only helps if you still carry a balance.
If you pay in full, BMO CashBack at $0 is the better BMO card. If you needed 0% on new purchases, TD Low Rate is the comparison.
A transfer fee still costs money at 0% interest. Pay the transferred balance off before month 18, when it moves to 15.99%.
Rewards and earn rates explained
Rewards program: N/A
This card does not pay rewards. Preferred Rate is BMO’s low-interest Mastercard: 13.99% on purchases, an 18-month balance-transfer teaser, and a $29 annual fee that Performance chequing can erase.
Extended warranty doubles the original manufacturer’s warranty by up to one extra year, and purchase security covers eligible items for 90 days. There is no travel medical, trip cancellation, or baggage coverage.
Do not park grocery spend here expecting CashBack’s 3%. Put a revolving balance or an incoming transfer here; put supermarket spend you pay in full on BMO CashBack Mastercard or Tangerine Money-Back.
Costco will take this Mastercard, and warehouse spend still accrues at 13.99% with no earn.
Welcome bonus: how to unlock it
0% introductory interest rate on balance transfers for 18 months (3% transfer fee), plus the $29 annual fee waived in the first year
For applications on or after September 15, 2026, new accounts get a 0% introductory rate on balance transfers for 18 months and a waiver of the $29 annual fee in year one. The transfer fee is 3%, which is $30 on a $1,000 transfer, and the minimum transfer is $100.
That fee waiver is the only fixed dollar amount in the offer. When the 18 months end, any remaining transferred balance is charged the cash advance rate of 15.99%.
Do not transfer more than you can repay before the teaser ends, and do not read 0% as a reason to keep a balance after month 18.
Welcome bonus eligibility: Limited to new BMO Preferred Rate Mastercard accounts approved for applications submitted on or after September 15, 2026. Not awarded to current or former cardholders who reinstate a closed account, product transfer, or open a new account. The account must remain in good standing. This offer may be withdrawn or changed without notice.
FAQ
Is the BMO Preferred Rate Mastercard worth it in 2026?
It is worth it when you will transfer a balance, the 3% fee plus 18 months at 0% beats the interest on the card you have now, and you pay the transfer down before it moves to 15.99%. The ongoing purchase rate is 13.99%. It is not worth it as a cash-back card or as a card you pay in full. The first-year dollar amount is the $29 fee waiver.
BMO Preferred Rate vs TD Low Rate vs CIBC Select?
This Mastercard charges 13.99% on purchases and $29 a year, rebated with a Performance chequing account and waived in year one. New accounts get 0% on balance transfers for 18 months with a 3% fee and a $100 minimum transfer. TD Low Rate Visa puts 0% on purchases for six months, not on transfers. CIBC Select Visa is the other transfer-shaped Visa.
Match purchases versus transfers to the debt you actually have.
Should I use this if I pay in full every month?
No. A 13.99% purchase rate only saves money when you pay interest. If you pay in full, BMO CashBack Mastercard is $0 and pays grocery cash back, which this card does not.
Does the annual fee stay waived?
Year one waives the $29 fee. After that, the fee is rebated every year with a BMO Performance chequing account. Without that account, the fee is $29 from year two.
Does this card charge foreign-exchange fees?
Foreign-currency purchases are converted at the payment network’s exchange rate plus 2.50%. This is a domestic rate card, not a no-FX travel card. For overseas spend, compare Scotiabank Passport Visa Infinite.
Compare related cards and guides
More Canadian credit card lists that match this product, plus a few cards people usually compare it with.
- TD Low Rate Visa Card review · TD · $25 annual fee
- CIBC Select Visa Card review · CIBC · $29 annual fee
- BMO CashBack Mastercard review · BMO · $0 annual fee
