Newcomers to Canada often need to send money to family and loved ones in their home country, repay foreign debts, or manage assets abroad. The method you choose for international money transfers can make a significant difference to how much money actually arrives — exchange rate markups and fees can silently cost 3-7% of your transfer amount if you use the wrong provider.
Canadian banks offer international wire transfers, but they are typically the most expensive option. Banks charge:
On a $1,000 transfer, bank fees could total $60-$120 or more. On a $5,000 transfer, total costs can easily reach $200-$350. This adds up significantly if you send money regularly.
Wise (formerly TransferWise): Widely regarded as the best value for international transfers. Uses the mid-market exchange rate (the real rate, no markup) and charges a transparent fee (typically 0.5-1.5% of the transfer amount). Available for transfers to 80+ countries. The WISE multi-currency account also allows you to hold and spend in multiple currencies.
Remitly: Excellent for transfers to developing countries, particularly India, Philippines, Mexico, and many African countries. Offers Express (fast) and Economy (cheaper) speed options. Very competitive rates for popular corridors.
Western Union / MoneyGram: Ubiquitous global networks with cash pickup options in thousands of locations. More expensive than Wise/Remitly, but valuable when the recipient needs cash rather than a bank deposit, or when banking infrastructure in the destination country is limited.
PaySend: Fixed-fee transfers to many countries, can be very cost-effective for mid-sized transfers.
Xoom (PayPal): Fast transfers with PayPal integration. Fees vary — compare for your specific corridor.
Exchange rates and fees vary significantly by destination country. Always compare actual costs (including the exchange rate) not just stated fees. Use Monito.com or Wise's comparison tool to see real-time comparisons for your specific send/receive currency pair before each transfer.
Sending your own money abroad (from your Canadian earned income or savings) is generally not a taxable event in Canada. However, there are reporting requirements for large amounts. If you hold foreign assets exceeding $100,000 CAD at any point in the tax year, you may need to file a T1135 Foreign Income Verification form with your Canadian tax return. This is a reporting requirement, not an additional tax — but failure to file can result in significant penalties.
All regulated transfer services in Canada are registered with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) for anti-money laundering compliance. You may be asked to provide ID and explain the purpose of large transfers. This is standard regulatory compliance — keep documentation of the source of funds for transfers over $100.
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