BMO Preferred Rate Mastercard

Overview

The BMO Preferred Rate Mastercard is BMO Bank of Montreal's low-interest credit card, issued on the Mastercard network. It carries a $29 CAD annual fee and offers a purchase interest rate of 13.99% — well below the standard 20%+ that applies to most Canadian rewards and cashback cards. A 15.99% rate applies to cash advances. This card does not earn rewards or cashback. Its entire value proposition is the reduced cost of carrying a balance, making it one of the more affordable low-rate cards available to Canadian applicants.

Who this card is for

This card is for Canadians who regularly carry a month-to-month credit card balance and are currently paying 20% or higher. If your average monthly balance is $3,000 CAD, switching from a standard-rate card to the Preferred Rate's 13.99% saves roughly $180 CAD per year in interest charges — well ahead of the $29 CAD annual fee. It's also useful for someone who needs to consolidate higher-interest debt: new applicants typically receive a promotional low-interest balance transfer offer for a limited period (check bmo.com for current terms), making it a practical debt management tool.

Key benefits

The 13.99% purchase interest rate is the headline. For a cardholder carrying a $2,000 CAD balance month-to-month, the difference between a 20% standard rate and 13.99% is roughly $120 CAD in annual interest savings — four times the $29 CAD annual fee. At a $5,000 CAD average balance, the savings jump to approximately $300 CAD annually.

The promotional balance transfer offer for new applicants (check bmo.com for the current rate and duration — typically a low-interest promo, not always 0%) gives an on-ramp to pay down transferred balances at a reduced cost during the promotional window.

Standard Mastercard purchase protection and extended warranty apply to eligible items.

Potential drawbacks

This card earns no rewards. Every dollar spent returns nothing in cashback or points. Cardholders who pay their balance in full each month derive no benefit from the low rate and would be better served by a rewards or cashback card. The MBNA True Line Mastercard offers a 12.99% purchase rate with no annual fee — a lower purchase rate than the BMO card at zero fee, making it a strong alternative for balance carriers who want to minimise total card cost.

How it compares

The MBNA True Line Mastercard is the primary comparison: 12.99% purchase rate, zero annual fee — cheaper on both fee and ongoing rate if you're focused purely on carrying a purchase balance. The National Bank Syncro Mastercard offers a lower 8.90% purchase rate at a $35 CAD annual fee — a better option for larger balances where the lower interest rate generates savings that exceed the $35 fee. The BMO card's edge is the BMO banking relationship and the balance transfer promotional offer, which can be more generous than competitors in certain windows.

Bottom line

A reasonable low-interest card for BMO clients who carry a balance and want to consolidate through a balance transfer promo. Compare the MBNA True Line's lower no-fee 12.99% and the National Bank Syncro's 8.90% rate before deciding — the BMO card's main draw is convenience for existing BMO customers rather than the lowest absolute rate.