Overview
The BMO Preferred Rate Mastercard is BMO's lowest-interest credit card, designed for Canadians who sometimes carry a balance and want to pay as little interest as possible. With a 13.99% purchase rate and 15.99% cash advance rate, it's significantly cheaper than standard credit cards (which typically charge 20–22%) when you don't pay your balance in full every month.
This card doesn't earn points, cash back, or any other rewards — and that's the point. You're trading rewards for a substantially lower interest rate, which can save far more money than any cash back program if you regularly carry a balance. The $29 annual fee is waived in the first year, and it can be rebated every year if you also hold a BMO Performance chequing account.
The welcome offer includes a 0% introductory balance transfer rate for 9 months with just a 0.99% transfer fee — making it an excellent option for consolidating higher-interest debt from other cards.
Welcome Offer
BMO is offering a competitive welcome package for new cardholders:
- 0% introductory interest rate on balance transfers for 9 months — with just a 0.99% transfer fee (much lower than the typical 2-3%)
- $29 annual fee waived in the first year
The balance transfer offer makes this card especially attractive for anyone looking to move existing credit card debt to a lower-cost card and pay it down interest-free for 9 months.
How to Earn
The BMO Preferred Rate Mastercard does not have a rewards program. There are no points, no cash back, and no miles earned on purchases. The card's value proposition is entirely built around its low interest rate.
How to Redeem
Not applicable — this card has no rewards program.
Insurance & Benefits
The BMO Preferred Rate Mastercard includes basic insurance coverage:
- Purchase protection — covers eligible purchases against damage or theft for a limited period
- Extended warranty — extends the manufacturer's warranty on eligible purchases
The card does not include travel insurance. BMO offers optional travel insurance plans that can be purchased separately for single trips or multi-trip annual coverage.
Additional Perks
- BMO Performance chequing rebate — get the $29 annual fee rebated every year when you hold a BMO Performance chequing account
- BMO PaySmart — split eligible credit card purchases into smaller monthly payments at a low cost
- Credit Coach — free 24/7 credit score monitoring with no impact to your score
- Lock/unlock card — instantly lock your card from the BMO app if misplaced
- Financial insights — personalized spending insights through the BMO app
Who Is This Card For?
The BMO Preferred Rate Mastercard is built for Canadians who sometimes carry a credit card balance and want to minimize the cost of borrowing. If you regularly pay your balance in full each month, a rewards card will serve you better — but if you occasionally or frequently carry a balance, the 13.99% rate can save you hundreds of dollars per year compared to a standard 20%+ card. It's also an excellent choice for balance transfers, with the 0% intro rate for 9 months at just a 0.99% fee.
Bottom Line
The BMO Preferred Rate Mastercard does one thing and does it well: keeps your borrowing costs low. At 13.99% on purchases and 0% for 9 months on balance transfers, it's one of the most affordable cards in Canada for anyone who carries a balance. You won't earn any rewards, but the interest savings will almost certainly outweigh whatever cash back or points you'd earn on a standard card — especially if you're carrying a balance of $1,000 or more. The first-year fee waiver and BMO Performance chequing rebate sweeten the deal further.
