Sending Money Home From Canada — 2025 Remittance Guide

Canada is one of the world's top remittance-sending countries. Here is how to send money home cheaply and safely — and avoid the fees that eat into your transfers.

The True Cost of International Money Transfers

Most people focus on the transfer fee, but the exchange rate markup is often the larger cost. Canadian banks typically offer exchange rates 2–4% worse than the mid-market rate (the "real" exchange rate you see on Google). On a $1,000 transfer, a 3% markup costs $30 — far more than the $15 wire fee you might be focused on. The cheapest services offer both low fees and rates close to the mid-market rate.

Best Services for Sending Money From Canada

Service	Transfer Fee	Exchange Rate	Speed	Best For
Wise (TransferWise)	0.3%–1.5%	Mid-market rate	1–2 days	Most countries, transparent fees
Remitly	$0–$3.99	Competitive	Minutes–3 days	Philippines, India, Mexico, Africa
Western Union	$5–$25	Markup 1–3%	Minutes	Cash pickup globally
MoneyGram	$5–$20	Markup 1–3%	Minutes	Cash pickup, rural areas
Canadian bank wire	$15–$50	Markup 2–4%	1–5 days	Large amounts, established relationships
XE Money Transfer	$0 (rate markup)	Markup 0.5–2%	1–3 days	Large transfers

Wise: The Cheapest Option for Most Transfers

Wise (formerly TransferWise) is consistently rated as the cheapest and most transparent international money transfer service. Key features:

• Uses the real mid-market exchange rate — no hidden markup
• Upfront fee shown before you confirm — no surprises
• Available in 80+ countries and 50+ currencies
• Transfers typically arrive in 1–2 business days (often same day for major corridors)
• Multi-currency account option if you need to hold foreign currency
• Send from your KOHO account or any Canadian bank account

Remitly: Best for Key Immigrant Corridors

Remitly specializes in high-volume immigrant remittance corridors — Canada to India, Philippines, Mexico, Nigeria, Pakistan, Jamaica, and others. They offer two transfer options: Economy (lower cost, 1–5 business days) and Express (minutes, slightly higher fee). Remitly often offers promotional rates for first-time users and loyal customers.

Large Transfers: Over $100 CAD

For large transfers, additional rules apply in Canada. Any cash transaction over $100 CAD must be reported to FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) by the financial institution. This is an anti-money-laundering requirement — it does not mean you are in trouble, but it does mean the transfer will be flagged and reviewed. You should be prepared to explain the source of funds (inheritance, property sale, savings, etc.). Keep documentation such as sale agreements, inheritance documents, or bank statements from the source account.

For large transfers, XE Money Transfer or a bank wire may be preferable to consumer apps, as they have better processes for large amounts and can provide documentation for tax purposes.

Tax Implications of Sending Money Abroad

Sending money to family members abroad is generally not taxable in Canada — it is not a deductible expense, but it is also not taxable income in Canada. However:

• If you are sending money to a foreign business account or as a business expense, consult a tax professional
• If you have foreign bank accounts where accumulated funds exceed $100,000 CAD, you must file Form T1135 with your tax return
• Gifts received from non-residents and transferred to Canada may need to be reported

How to Get a Canadian Account to Send From

To use Wise, Remitly, or other transfer services, you need a Canadian bank account to fund the transfer. KOHO's no-fee account is an excellent starting point — link it to Wise or Remitly and start sending money home within days of arriving in Canada, even before you have a SIN card.