Transferring your savings internationally is a big decision, and it’s not easy.
If you’ve had enough of the snow capped mountains in Canada and trading them in for the sunny beaches of the Australian Coastline. If you are making the move, it’s a big decision financially and working out what to do with your savings can be the biggest part of it.
Before jumping in and transferring all your money from Canada to Australia, it’s important that you’re aware of all your options so you make an informed choice. We’ve created this guide to help you do just that, and determine the best ways to transfer your money internationally.
This guide will cover:
- Reasons you’re deciding to transfer your money overseas.
- Currency exchange and how international transfers work.
- The importance of getting the best deal.
- Typical fees and commissions for transferring savings overseas.
- The difference between banks and currency exchange providers.
- Dedicated currency exchange providers and the services they offer.
- How to use a currency provider to transfer your savings from Canada to Australia.
- What to do with any money you leave in Canada.
- Tips and tricks.
Read on to find out the way we think is best for dealing with your savings in another country.
How to Find the Cheapest Way to Transfer Money From Canada to Australia
Compare The Total Cost
The total cost of the transfer comes down to 2 things:
1. Transfer Fees
Every Australian bank and money transfer company will charge you a different fee to send money overseas. Usually it’s between $10 and $32.
2. Exchange Rate Margin
There is no “standard” exchange rate. Each bank will offer you a different exchange rate based on the currency you want to send overseas and the amount you need to send.
Why Are You Transferring Your Life Savings From Canada to Australia?
There are so many reasons that you could be making the journey to sunny Australia from scenic Canada,
- You might be looking to study abroad and are going to continue your education overseas.
- Maybe you want a change of scenery and are heading for the sunny beaches along the Australian coast.
- You might have a new work opportunity, maybe your company is expanding overseas.
- Maybe you’ve just retired and want a big change to welcome this new stage of your life.
Whatever the reason, we want to help you make the most of this big new adventure on the other side of the world and help you have the financial backing to do it.
How Currency Exchange and Money Transfer Works
When you’re transferring your money internationally, it will involve converting it from one currency into another. In this instance, you’ll be exchanging from Canadian dollars to Australian Dollars. International transfers rely on a universally agreed upon exchange rate as the baseline. From here, it is calculated exactly how much will be converted into Australian Dollars. This will be dependent on the amount you’re transferring.
A number of Canadian dollars you get will be subject to certain fees certain fees and exchange rate commissions which will determine how many Australian dollars you receive. This depends on several important factors:
- The prevailing, interbank, baseline exchange rate between CAD and AUD.
- The amount that you’re planning to transfer.
- How you plan to pay for your transfer (typically via bank transfer or debit card).
- The difference between the baseline exchange rate and the exchange rate you are offered by the provider you use.
- How you will be receiving your money in Australia (typically directly into a bank account).
- Any other factors and fees associated with the method you choose.
Why You Want The Best Deal When You’re Sending Savings From Canada to Australia
So why would you spend time researching ways to transfer your money when you could just get your bank to do it for you? The reason is, your bank will not offer you nearly as good an exchange rate as a dedicated currency exchange provider. Banks and PayPal typically:
- Offer a much less competitive exchange rate.
- Charge higher fees or additional ones.
- Can’t provide dedicated customer service to help and support you through your transfer.
- Don’t give you access to ‘forward contracts’, which allow you to lock in an exchange rate for a future.
For example, taking into account the average exchange rates and fees provided by banks, compared to a dedicated currency exchange provider:
On a transfer of $50,000CAD, you could pay over $2,000 more if you use your bank or PayPal.
Typical Fees and Commissions
No matter which provider or bank you choose, the thing that will impact the most upon the Australian dollars you’ll receive, is the exchange rate. This comes from the difference between the interbank rate and the rate being offered to you. There are several areas that have a big influence on how much you will pay for your transfer from Canada to Australia.
Any difference between the interbank or mid market rate will directly impact the amount of money you will receive.
Here are examples of converting your US dollars to Australian dollars:
- Interbank, mid-market rate for transferring CAD to AUD (baseline) — 1.015AUD per CAD
- PayPal exchange rate for transferring CAD to AUD — 0.987AUD per CAD
- ANZ exchange rate for transferring CAD to AUD — 0.970AUD per CAD
- OFX currency provider exchange rate for transferring CAD to AUD — 1.005AUD per CAD
- Difference between PayPal and baseline rate — 2.8% worse.
- Difference between ANZ and baseline rate — 4.5% worse.
- Difference between OFX and baseline rate — 1.5% worse.
These examples are correct as of late June 2017. The exchange rate you are offered will differ depending on date, time, the amount you’re transferring and various other factors.
Commissions or Additional Fees
In addition to the difference in exchange rate, there will be additional fees to consider from some providers. These fees can be a fixed rate or a commission based on a percentage of the total.
Payments Fees for Deposit and Withdrawal
Some banks and providers charge an additional fee for receiving or sending money into an account. This might be referred to as an “international wire fee”, or labelled something different.
Your Bank Versus a Dedicated Currency Exchange Provider
Try our money transfer and currency exchange comparison tool to compare providers rates. It takes into account exchange rates and fees to accurately show you how much money you could save. We looked into converting 50,000 Canadian Dollars to Australian Dollars to see what it would cost.
|Provider||CAD to AUD Exchange Rates||Transfer Fee||Total AUD for $50,000USD||Difference to Baseline|
From the table we can see the difference in fees between Banks and PayPal as compared wiht a dedicated provider. More than $2000 could be saved in some instances.
The Benefits of Dedicated Currency Exchange Providers
There are some great options in terms of providers if you are looking at bringing your savings from Canada to Australia. Dedicated currency providers like TorFX, HiFX, OFX, and World First provide low-cost and competitive options for transferring money quickly and easily.
These providers have several benefits including:
- Lower fees and better exchange rates than PayPal or banks.
- Quick transfers, that sometimes happen within one working day.
- Dedicated customer support and advice, essential when you’re making a big decision such as this.
- Online options, including mobile apps.
- Forward or limit orders to manage risk and reduce market changes.
Steps to Using a Currency Exchange Provider
It’s really easy to get set up with a currency exchange provider, we’ve listed the steps below.
- Use our comparison tool to see who can offer you the best deal.
- Visit their website directly from ours once you’ve decided.
- Create an account with the currency provider through their website— This will generally require ID and proof of address from you.
- Get an up-to-date quote for transferring between CAD and AUD.
- Organise your transfer using their online service, app or over the phone.
- Provide the details of the bank account receiving the money — you will generally need an IBAN or SWIFT number.
- Fund your account with the provider, normally by bank transfer or debit card.
- The provider you’ve chosen will make the exchange and deposit the funds into the correct bank account in Australia for you.
If You Leave Money in Canada, What Should You do With it?
If you’re still receiving payments within Canada, say for retirement or from investments, you may want that money coming to Australia as well. Through the provider you’ve chosen to transfer your money, you can set up regular transfers that happen automatically.
This money can be in your Australian bank account within a couple of days. The other option is to leave some money in your Canadian account, in case you travel home while you’re in Australia.
Final Tips of Transferring Your Savings:
We’ve listed our final tips on getting your money from Canada to Australia:
- Use the tool on our comparison page to see which provider will give you the best rates and lowest fees.
- Check with both the sending and receiving banks to see if they charge any fees for sending or receiving funds.
- Find out about “forward” or “market limit” orders – these allow you to set an exchange rate and transfer only when the rate is where you want it. This is handy for managing risk, but only if you’re not in a rush.
- Because you’re transferring a large amount, give your currency provider a call as they may offer a better rate, it’s always worth asking!
There you have it, our complete guide to transferring your savings between Canada and Australia. Hopefully, you can use the money you’ll save to enjoy your time in Australia even more.
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