What the Card Offers
BMO markets the Preferred Rate Mastercard as its lowest-rate card: 13.99% on purchases, "Canada's best balance transfer introductory rate and term offer" (0% for 18 months with a 3% fee), and a first-year fee waiver.
- 13.99%
Purchase interest rate1
13.99% on purchases and 15.99% on cash advances and balance transfers.
- 0%
Balance transfers for 18 months2
0% on balance transfers made in the first 18 statement periods, with a 3% fee.
- $0
First-year annual fee3
The $29 fee is rebated in year one, and yearly with a BMO Performance chequing plan and minimum spending.
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- 90 days
Purchase protection4
Theft or damage cover for 90 days, and up to 1 extra year of warranty.
Benefits as advertised by the issuer. The conditions attached to them are in the Fine Print Report below.
Sources (4)
- BMO Preferred Rate Mastercard product page (retrieved 2026-10-18); BMO "Important information about BMO Credit Cards" CC190-COB (06-26)
- BMO Preferred Rate Mastercard product page, footnote ∆ (retrieved 2026-10-18)
- BMO Preferred Rate Mastercard product page, footnote ∆ (retrieved 2026-10-18); BMO Preferred Rate Mastercard product page (retrieved 2026-10-18)
- BMO Preferred Rate Mastercard Insurance Product Summary (CUMIS / Allianz Global Assistance)
The Fine Print Report
Moderate fine print. A useful low rate that's easy to lose.
2 missed payments: 13.99% becomes 25.99%Impact level: High
Two missed payments in 12 months raise your purchase rate from 13.99% to 25.99% for at least a year
If BMO doesn't receive your minimum payment by the due date, and it's still unpaid when the next statement is prepared, twice in any 12-month period, your rates rise to 25.99% on purchases and 27.99% on cash advances and balance transfers, starting the next statement period, for at least 12 months.
Why it matters: The low rate is the reason to hold this card. Two late payments in a year cost you that rate for at least 12 months, so set up automatic minimum payments.
0% transfer: pay it all or purchases accrueImpact level: Medium
During the 0% transfer, new purchases accrue 13.99% unless you pay the whole balance, transfer included
Balance transfers are treated as cash advances. To avoid interest on new purchases, you must pay the entire balance, including the transferred amount, by the due date. Payments above the minimum are split proportionally across balances, and any transfer left after 18 statement periods moves to the 15.99% cash rate.
Why it matters: Avoid new purchases on the card until the transferred balance is paid off.
2.5% FX fee; refunds credited at a lower rateImpact level: Medium
Foreign currency purchases cost 2.5% extra, and refunds come back at a lower rate
Purchases in a foreign currency are converted at the network's rate plus 2.50%. Refunds are converted at the network's rate minus 2.50% on the day the refund posts, and BMO's agreement says the credit will in most cases be less than the original charge.
Why it matters: Every $1,000 spent in a foreign currency costs about $25 in fees, and a returned foreign purchase costs about the same again.
Closure: BMO can take your depositsImpact level: Medium
BMO can close the account without notice, demand the full balance and take it from your BMO deposits
BMO may cancel your card or close the account at any time without telling you in advance. The total debt is then due immediately, and if you don't pay it, BMO may apply any money you have on deposit with it or its affiliates against the balance.
Why it matters: If your chequing or savings account is also at BMO, an unpaid balance can be taken from it directly.
0% transfer costs 3% up frontImpact level: Low
The 0% transfer costs 3% up front, and only applies to non-BMO balances
Each balance transfer carries a 3% fee charged when it posts ($30 per $1,000), and balances from other BMO credit cards can't be transferred.
Why it matters: On $5,000 the fee is $150, comparable to about 2 months of interest at 13.99%.
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No rewards or travel insuranceImpact level: Low
No rewards and no travel insurance
The card earns no points or cash back. Its only insurance is 90-day purchase protection and a 1-year extended warranty.
Why it matters: It's a tool for carrying a balance at a lower rate, not an everyday spending card.
Who This Card Is For
Great fit if you...
- Carry a balance from month to month
- Want to transfer a balance at 0%
- Make payments reliably on time
Consider alternatives if you...
- Pay in full every month
- Want rewards or insurance
- Plan to keep using the card during the promo
The Verdict
The Preferred Rate Mastercard's 13.99% rate is 8 points below BMO's standard rate, and 18 months at 0% on transfers can cut the cost of existing debt.
Two late payments in a year raise the rate to 25.99% for at least 12 months, and new purchases accrue interest while a transferred balance remains.
The Recommendation: Good for paying down debt if you stop using it for new purchases and never miss a payment.
Before you apply: This teardown is general information, not financial, legal or insurance advice, and reflects the issuer's documents as of October 2026. Terms, rates, fees and offers change, and the issuer's own agreement, disclosure statement, insurance certificates and program terms are what govern your card. Read them in full and confirm details with the issuer before you apply. Full disclaimer