How to Send Money Internationally from Canada - Remittance Guide for Newcomers

For newcomers in Canada, sending money internationally is often a regular financial obligation. Whether you are supporting family back home, repaying loans, or managing financial commitments abroad, choosing the right remittance method can save you hundreds or even thousands of dollars per year. This comprehensive guide compares all major options for sending money from Canada, explains the true cost of transfers, and covers the Canadian reporting requirements you need to know about. If you are still getting set up financially in Canada, our benefits finder can help you discover resources available to newcomers.

Why the Method You Choose Matters

The difference between the best and worst remittance options can be staggering. Consider this example: sending $1,000 CAD to a family member in India. Depending on the service you use, the recipient could receive anywhere from 58,000 INR to 62,000 INR - a difference of 4,000 INR (roughly $65 CAD) on a single transfer. Over a year of monthly transfers, that adds up to nearly $780 CAD lost to poor exchange rates and fees.

Understanding exchange rates, fees, transfer speeds, and reliability will help you make the best choice for your specific situation.

Option 1: Bank Wire Transfers

Canadian banks offer international wire transfers through their branches and online banking platforms. While convenient if you already have a Canadian bank account, bank wire transfers are typically the most expensive option.

How It Works

You request an international wire transfer through your bank, providing the recipient's bank details (including their SWIFT/BIC code, account number, and bank address). The money is sent through the SWIFT network, which connects banks worldwide. Your bank converts the currency and routes the payment through correspondent banks.

Costs

• Sending fee: $25 to $80 CAD per transfer (varies by bank)
• Exchange rate markup: Typically 2% to 4% above the mid-market rate
• Correspondent bank fees: Intermediary banks may deduct $10 to $30 from the transfer amount
• Recipient bank fees: The receiving bank may charge an additional fee

Transfer Time

Bank wire transfers typically take 2 to 5 business days, depending on the destination country and the number of correspondent banks involved.

When Banks Make Sense

Despite the higher costs, bank wire transfers can be appropriate in certain situations. If you are sending a very large amount (over $50,000), some banks offer negotiable exchange rates for premium clients. Bank wires are also useful if the recipient's country has limited coverage from online platforms, or if you need an official bank-to-bank record for legal or property transactions.

Option 2: Wise (Formerly TransferWise)

Wise is widely regarded as one of the best options for international money transfers from Canada. It was founded specifically to address the high costs and poor transparency of traditional bank transfers.

How It Works

Wise uses a peer-to-peer matching system and local bank accounts in different countries to transfer money without actually moving it across borders in the traditional sense. This allows them to offer the mid-market exchange rate - the same rate you see on Google or Reuters.

Costs

• Transfer fee: Typically 0.5% to 1.5% of the transfer amount (varies by currency pair)
• Exchange rate: Mid-market rate with no markup
• No hidden fees: The total cost is shown upfront before you confirm

Transfer Time

Most transfers arrive within 1 to 2 business days. Some currency routes offer instant or same-day delivery.

Wise Multi-Currency Account

Beyond simple transfers, Wise offers a multi-currency account that allows you to hold, receive, and manage money in over 50 currencies. This is particularly useful for newcomers who may still receive payments in their home currency, or who need to manage finances in multiple countries. The Wise debit card lets you spend in any currency at the mid-market rate, which can also be helpful when travelling internationally.

Pros and Cons

Wise's biggest advantage is transparency - you always know exactly what you are paying. The exchange rate is the best you will find. The downside is that it may not be available for every country, and very large transfers may require additional verification that can slow the process. Wise also requires you to have a Canadian bank account to fund transfers, which is fine for most settled newcomers but may be a barrier for those who have just arrived.

Option 3: Remitly

Remitly is a popular remittance service designed for sending money to developing countries. It is especially popular among newcomers sending money to South Asia, Southeast Asia, Latin America, and Africa.

How It Works

Remitly offers multiple delivery options: direct bank deposit, mobile money transfer, cash pickup at partner locations, and even home delivery in some countries. You can send money through their app or website.

Costs

• Transfer fee: Varies by delivery speed and amount - Express transfers may cost $0 to $4.99, while Economy transfers are often free
• Exchange rate: Slightly below mid-market rate (Remitly makes money through a small exchange rate margin)
• Promotional rates: First-time users often receive better exchange rates on their first transfer

Transfer Time

Express transfers can arrive within minutes. Economy transfers take 3 to 5 business days. The fastest option depends on the destination country and delivery method.

Remitly's Strengths for Newcomers

Remitly excels in corridors that matter most to newcomers - transfers to India, Philippines, Mexico, Colombia, Nigeria, Pakistan, and dozens of other countries have competitive rates and fast delivery. The cash pickup option is valuable when your recipient does not have a bank account. Remitly's app is well designed and supports multiple languages, making it accessible for newcomers who may not be fully comfortable in English or French.

Option 4: Western Union

Western Union is one of the oldest and most widely available money transfer services in the world. With over 500,000 agent locations globally, it is often the best option when the recipient does not have a bank account.

How It Works

You can send money through Western Union's website, app, or at physical agent locations (found in many convenience stores, pharmacies, and grocery stores across Canada). Recipients can collect cash at agent locations in their country, receive bank deposits, or get mobile money transfers.

Costs

• Transfer fee: $5 to $50+ depending on the amount, destination, and delivery method
• Exchange rate: Western Union applies a markup on the exchange rate, which can be 2 to 5% above mid-market
• Cash pickup fees: May be higher than bank deposit options

Transfer Time

Cash pickup is often available within minutes. Bank deposits take 1 to 3 business days.

Option 5: Other Transfer Services Worth Considering

PayPal and Xoom

PayPal's international transfer service, Xoom, offers transfers to many countries. It is convenient if you already use PayPal, but the exchange rates include a markup of 2 to 4%. Xoom supports bank deposits, cash pickup, and mobile reloads in many countries.

Interac e-Transfer International

Some Canadian banks now support international Interac e-Transfers to select countries. This service is still expanding and may not cover all destinations, but it can be a convenient option for sending smaller amounts to supported countries.

Cryptocurrency Transfers

Some newcomers use cryptocurrency (like Bitcoin or USDT) to send value internationally. While this can offer low fees, it introduces exchange rate volatility and requires both sender and recipient to be comfortable with crypto wallets and exchanges. It is not recommended for those unfamiliar with cryptocurrency.

Comparing All Options Side by Side

Here is a comparison of the major remittance options available in Canada, based on sending $500 CAD.

Understanding Exchange Rates - The Hidden Cost

Exchange rates are the single biggest factor in the true cost of an international transfer. The mid-market rate (also called the interbank rate) is the "real" exchange rate - the midpoint between the buy and sell prices of two currencies on the global market. You can check the current mid-market rate on the Bank of Canada exchange rates page.

When a bank or transfer service offers you a different exchange rate, the difference between their rate and the mid-market rate is their profit margin. This is often where the biggest costs are hidden.

How to Calculate the Real Cost

To determine the true cost of any transfer, follow these steps:

1. Check the mid-market rate on Google or the Bank of Canada website
2. Calculate what the recipient should receive at the mid-market rate (your amount multiplied by the mid-market rate)
3. Compare that to what the recipient will actually receive through the service
4. The difference is your total cost - including both fees and exchange rate markup

A Practical Example

Suppose you want to send $1,000 CAD to the Philippines. The mid-market rate is 42.50 PHP per CAD. At the true mid-market rate, your recipient would receive 42,500 PHP. Service A charges a $5 fee and offers a rate of 42.00 PHP, so your recipient gets ($1,000 - $5) x 42.00 = 41,790 PHP. Service B charges no fee but offers a rate of 41.00 PHP, so your recipient gets $1,000 x 41.00 = 41,000 PHP. Service A is clearly better despite charging a fee, because its exchange rate is closer to mid-market. This demonstrates why you must always calculate the total cost, not just the fee.

CRA and FINTRAC Reporting Requirements

When sending money internationally from Canada, you need to be aware of Canadian reporting requirements. These exist for anti-money laundering purposes and apply to everyone - not just newcomers.

FINTRAC Reporting

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) requires that financial institutions report international electronic funds transfers (EFTs) of $10,000 CAD or more. This means your bank or transfer service will automatically report large transfers to FINTRAC. You do not need to file anything yourself - your financial institution handles the reporting. Learn more on the FINTRAC website about electronic funds transfer reporting.

CRA Tax Implications

Money you send abroad is generally not taxable in Canada - you are sending money you have already earned and paid taxes on. However, if you are transferring money that generates income (such as rental income from property abroad), that income may be taxable in Canada. The CRA requires Canadian tax residents to report worldwide income. Check the CRA's foreign reporting page for details on when foreign assets and income must be reported. For general guidance on your tax obligations, the CRA individual tax return page is a helpful starting point.

Foreign Asset Reporting (T1135)

If you hold specified foreign property with a total cost of more than $100,000 CAD at any time during the year, you must file form T1135 with your Canadian tax return. This includes bank accounts, real estate, and investments held outside Canada. Newcomers are exempt from T1135 filing for their first tax year in Canada, but must comply from the second year onward. If you need help understanding this requirement, our document explainer tool can help clarify government forms and documents.

Tips to Save Money on International Transfers

Here are practical strategies to reduce the cost of sending money abroad from Canada.

1. Compare Services Before Every Transfer

Exchange rates and fees fluctuate constantly. The cheapest service last month may not be the cheapest this month. Take 5 minutes to compare before each transfer.

2. Send Larger Amounts Less Frequently

Most services charge a flat fee per transfer. Sending $2,000 once per month costs less in fees than sending $500 four times per month. Consolidate your transfers when possible - but do not exceed your budget or leave your family waiting.

3. Time Your Transfers Strategically

Exchange rates change throughout the day. While you cannot perfectly time the market, you can avoid sending during periods of extreme currency volatility. If the Canadian dollar has dropped sharply, waiting a few days for it to recover could save you money. You can set up rate alerts on Wise to be notified when the exchange rate reaches your target.

4. Use a Wise Multi-Currency Account

Wise offers a multi-currency account that lets you hold money in multiple currencies. If you receive payments in a foreign currency or can time your conversions, this can be a powerful tool for getting the best rates.

5. Avoid Airport and Hotel Money Changers

If you need to send money or exchange currency in person, avoid airport kiosks and hotel exchange services. Their rates are typically 5 to 10% worse than online services. Use an online platform or at minimum visit your bank.

6. Watch for Promotional Offers

Many transfer services offer promotional rates or zero-fee transfers for first-time users. Take advantage of these offers, but do not commit to a single service just because of an introductory promotion. The regular rates and fees are what matter for ongoing transfers.

Protecting Yourself from Scams

International money transfer scams are unfortunately common. Here are warning signs and safety tips:

• Never send money to someone you have not met in person or do not personally know
• Be suspicious of urgent requests for money, especially from people claiming to be government officials or relatives in distress. The CRA fraud prevention page has useful tips on recognizing scams
• Only use established, regulated transfer services - never wire money to unknown accounts at someone's request
• If you receive an unexpected refund or overpayment, verify it with your bank before sending any money back
• Keep records of all your transfers, including confirmation numbers and receipts

Common Mistakes Newcomers Make with International Transfers

• Using their bank by default - Banks are convenient but almost always the most expensive option for international transfers
• Ignoring the exchange rate - A "free" transfer with a bad exchange rate costs more than a transfer with a small fee and a good rate
• Not verifying recipient details - Incorrect bank details can cause transfers to bounce, resulting in delays and additional fees
• Splitting transfers to avoid reporting - This is illegal and unnecessary. FINTRAC reporting is routine and does not affect you negatively
• Not keeping records - Save receipts and confirmation emails for all transfers. You may need them for tax purposes or to resolve disputes

Frequently Asked Questions

Is it legal to send money abroad from Canada?

Yes, it is completely legal to send money internationally from Canada. There are no limits on how much you can send, though transfers of $10,000 or more are reported to FINTRAC.

What is the cheapest way to send money from Canada?

For most currency pairs and amounts, Wise offers the best overall value due to its mid-market exchange rate. For specific corridors (like Canada to the Philippines or India), Remitly may be competitive. Always compare before each transfer.

How long does an international transfer take?

It depends on the service and destination. Wise and Remitly typically deliver within 1 to 2 business days. Bank wire transfers take 2 to 5 days. Western Union cash pickup can be available within minutes.

Do I need to pay taxes on money I send abroad?

Generally, no. Money you send from your already-taxed income is not taxed again. However, income generated by foreign assets may be taxable. Consult a tax professional if your situation is complex.

Can I send money to someone without a bank account?

Yes. Western Union and Remitly both offer cash pickup options where the recipient collects money in person at an agent location. Some services also offer mobile money transfers in supported countries.

Getting Help with Financial Tasks in Canada

Sending money internationally is just one part of managing your finances as a newcomer. For help with other financial tasks - from understanding Canadian tax obligations to finding government benefits you qualify for - visit our newcomer settlement checklist or ask our AI chat assistant for personalized guidance. Explore in-demand jobs in Canada to grow your income and better support your family both here and abroad.