BMO Preferred Rate Mastercard: BMO’s lowest interest rate
The BMO Preferred Rate Mastercard is built for people seeking lower interest rates on purchases and cash advances.
It offers a straightforward option for those who prioritize a lower rate over rewards programs or extra perks.
While it doesn’t include rewards, the card’s main appeal is its low interest rate and low annual fee, which makes it a practical choice for people who tend to carry a balance.
About the BMO Preferred Rate credit card
The BMO Preferred Rate Mastercard focuses on lower interest rates, helping cardholders pay less in interest when they carry a balance. BMO says it’s the card with its lowest interest rate.
It’s geared towards people who want to keep their credit card costs manageable without dealing with a rewards program.
It can suit people who use a card regularly for purchases, or who want to move debt from cards with higher interest rates through a balance transfer.
Benefits of the BMO Preferred Rate credit card
The BMO Preferred Rate Mastercard offers practical features for cardholders who want to keep costs down.
Here are some of its benefits:
- A 13.99% interest rate on purchases and 15.99% on cash advances and balance transfers, lower than many standard credit cards;
- The $29 annual fee is rebated every year if you also have a BMO Performance chequing account;
- You can add another cardholder at no charge;
- Extended Warranty Insurance doubles the manufacturer’s warranty for up to one additional year, and Purchase Security Insurance covers eligible items against theft or damage for 90 days;
- The Mastercard Assistance Centre provides 24/7 emergency support virtually anywhere in the world;
- Get up to 30% off Avis and up to 35% off Budget base rates when you prepay with the card, or at least 10% off when you book with it.
Insurance coverage is subject to the terms, limits and exclusions in the Certificate of Insurance provided with the card.
Disadvantages of the BMO Preferred Rate credit card
The BMO Preferred Rate card offers some useful features, but it also has drawbacks to consider.
Here are some of the disadvantages:
- It comes with a $29 annual fee, unless you have a BMO Performance chequing account;
- The card doesn’t have a rewards program, so it may not suit people looking for travel points, cash back or other incentives;
- The card doesn’t include travel insurance. BMO offers travel insurance separately, at an extra cost;
- A 2.5% foreign transaction fee applies to purchases in foreign currencies;
- There’s no interest-free grace period on balance transfers or cash advances.
About the issuing bank
The BMO Preferred Rate Mastercard is issued by BMO (Bank of Montreal), one of Canada’s largest financial institutions.
BMO offers a wide range of financial products, including bank accounts, investments, loans, mortgages and credit cards.
Cardholders can manage their card through BMO Digital Banking and the BMO Mobile Banking app, where they can lock or unlock the card, set up BMO Alerts and check their credit score for free with Credit Coach.
Fees of the BMO Preferred Rate credit card
Like most credit cards, the BMO Preferred Rate comes with fees that should be considered.
These include:
- Annual fee: $29 (rebated every year with a BMO Performance chequing account);
- Additional cardholder: $0;
- Annual interest rate for purchases: 13.99%;
- Annual interest rate for cash advances and balance transfers: 15.99%;
- Interest-free grace period: at least 21 days on purchases, if you pay your balance in full by the due date;
- Foreign currency conversion fee: 2.5%;
- Over-limit fee: $29.
Rates and fees checked on September 22, 2026, against BMO’s official information. Confirm current terms on the BMO website before applying.
Why apply for this card?
The BMO Preferred Rate Mastercard can be a good fit for people who want to pay less interest when they carry a balance and are looking for a low-cost card for everyday spending.
However, if you’re looking for rewards or benefits such as travel insurance, this card may not be the best choice.
Before applying, compare the $29 annual fee and the card’s interest rates with other low-interest options. If you have a BMO Performance chequing account, the annual fee is rebated.
To apply, you must be a Canadian citizen or permanent resident, have reached the age of majority in your province, not have declared bankruptcy in the past seven years and meet BMO’s minimum income requirements.
Discover more details about the BMO Preferred Rate card:
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Disclaimer: This site is independent and strictly informational, and its content does not constitute financial advice. Finvyu is not affiliated with BMO. We do not guarantee credit card approval, which is solely subject to a credit check, income verification and risk analysis by the issuing bank (BMO). Finvyu Editorial Team.