How to Send Money Overseas as a Newcomer

To send money overseas as a newcomer to Canada, you can use banking services, money transfer apps, or currency exchange services.

The most cost-effective option is typically online transfer services like KOHO, which offer better exchange rates and lower fees than traditional banks.

Before choosing a service, compare fees, exchange rates, and delivery times to get the best value.

Bringing money to Canada when you arrive

As a newcomer, one of your first concerns will be accessing your money after landing.

Here's what you need to know:

Step 1: Know How Much Money You Need at the Border

Most permanent residents must show they have enough settlement funds when entering Canada. Immigration, Refugees, and Citizenship Canada updates these requirements yearly based on the Low-Income Cut Off. The amount depends on your family size.

Some people are exempt from this requirement, including Canadian Experience Class applicants and those with valid job offers.

Keep in mind that the minimum amounts might not cover your actual living costs, especially in expensive cities like Toronto or Vancouver. It's smart to bring enough money for at least six months of expenses.

Step 2: Check Your Home Country's Currency Rules

Before leaving, find out if your home country limits how much money you can take out.

Some countries:

• Limit daily or yearly transfers

• Charge taxes on international money movements

• Restrict how much foreign currency you can carry

Canada doesn't limit incoming transfers, but tracks transactions of $10,000+ to prevent money laundering.

Step 3: Open a Canadian Bank Account Early

Many Canadian banks let newcomers open accounts before arriving. This gives you a place to transfer funds, though you'll typically need to visit a branch in person after arrival to access your money.

The transfer confirmation from your bank can serve as proof of funds at the border.

Step 4: Prepare Documents to Show Your Funds

Border officials may ask for proof of your settlement funds.

Acceptable proof includes:

• Bank letters (from home or Canadian banks)

• Cash

• Traveller's cheques

• Bank drafts

• Travel or forex cards

• International money orders

• Easily liquidated stocks or bonds

Bank letters should include the institution's letterhead, your name, account details, current balance, six-month average balance, and any outstanding debts.

Note that you can't use hard-to-sell assets like real estate as proof of funds, and you can't borrow money just to show proof of funds.

Sending money overseas from Canada

Once settled in Canada, you might need to send money back home to support your family.

Here are your best options:

Online Money Transfer Services

Online services often offer the best value when sending money abroad:

• KOHO: Low fees & market leading exchange rates

• XE Money Transfer: Good for larger transfers with competitive rates

• WorldRemit: Convenient for sending to countries where bank accounts are less common

Traditional Banking Options

Major Canadian banks offer international wire transfers, but they usually come with:

• Higher service fees

• Less favourable exchange rates

• Longer processing times

However, they're secure and convenient if you already bank with them.

Money Transfer Operators

Services like Western Union and MoneyGram let you send money to people without bank accounts. Recipients can pick up cash at local offices, which can be helpful in regions with limited banking.

Tips for saving money on international transfers

1. Compare exchange rates: Even small differences can add up on large transfers

2. Watch out for hidden fees: Some services advertise "no fees" but make money on poor exchange rates

3. Consider transfer speed: Faster isn't always better if it costs more

4. Plan regular transfers: Some services offer better rates for scheduled transfers

5. Send larger amounts less often: This often reduces the overall fee burden

Keeping your money safe

When sending money internationally:

• Use only registered and regulated services

• Double-check recipient details before confirming

• Be wary of deals that seem too good to be true

• Keep records of all transfers

• Never share your banking passwords or login details

Make your money work harder across borders

Managing your money across borders is an essential skill for newcomers to Canada. Whether you're bringing funds with you when you arrive or sending money back home to family, understanding your options can save you significant money and stress.

By comparing services, watching exchange rates, and choosing the right transfer method for your needs, you can keep more of your hard-earned money where it belongs.