How to Send Money From Australia to Canada

Sending money across international borders requires understanding various financial mechanisms and regulatory requirements. For individuals and businesses transferring funds from Australia to Canada, navigating this process efficiently involves selecting appropriate methods, preparing necessary documentation, and comprehending associated costs. This guide outlines practical considerations for conducting such transfers.

Available Transfer Methods

Several avenues exist for sending money from Australia to Canada, each with distinct features. Online money transfer services have gained prominence due to their convenience and competitive offerings. Companies like Wise, Remitly, OFX, Revolut, Xe, and WorldRemit typically offer lower fees and more favorable exchange rates compared to traditional banks, often facilitating faster transfers for smaller amounts. These platforms are generally accessible online or through mobile applications.

Traditional banks and financial institutions also provide international wire transfer services. While banks are often perceived as secure, their services typically involve higher fees and may have slower processing times, sometimes taking several business days for funds to arrive. These transfers are often suitable for individuals who prefer to conduct transactions through their existing banking relationships or for sending larger sums where security is a primary concern.

Essential Information and Documentation

Before initiating an international money transfer, gathering specific information and documentation is important for a smooth process. Senders typically need to provide personal identification, such as a passport or driver’s license, along with proof of address. For larger transfers or initial transactions, details regarding the source of funds may also be requested to comply with regulatory requirements.

Accurate recipient details are equally important to ensure the funds reach the correct Canadian account. This includes the recipient’s full legal name and address. Key banking information required for the Canadian recipient’s bank includes:
The bank’s name and branch address
The recipient’s bank account number
The SWIFT/BIC code for their bank
The Canadian Transit Number (a 5-digit branch code)
The 3-digit institution number (these two form the routing number for Canadian accounts)
Some services or banks may also require a stated purpose for the transfer, such as family support or payment for goods.

Understanding Transfer Costs and Exchange Rates

The financial implications of international money transfers involve various costs, which can significantly affect the total amount received by the recipient. Transfer fees represent one component, and these can be structured as fixed charges, percentage-based fees, or tiered fees depending on the transfer amount and provider. While some services may advertise “no fees,” costs are often incorporated into the exchange rate.

Exchange rates are a primary factor determining the final amount received. The mid-market rate, also known as the interbank rate, represents the true market value between two currencies without any markup. However, most providers and banks apply a margin to this rate, meaning the exchange rate offered to customers is less favorable than the mid-market rate. Hidden costs can also arise, particularly with traditional wire transfers, through correspondent bank fees. These intermediary banks may deduct additional charges from the transfer amount as it moves through the SWIFT network, potentially reducing the final sum the recipient receives. Comparing the total cost, which combines both explicit fees and the exchange rate margin, is crucial for making an informed decision.

Executing Your Money Transfer

Initiating a money transfer from Australia to Canada follows a general sequence of actions. The initial step involves selecting a suitable service provider based on factors such as transfer costs, speed, and preferred method of payment. After choosing a provider, the sender will need to create an account or log into an existing one.

Once logged in, the process moves to initiating a new transfer request. The sender specifies the amount of Australian Dollars (AUD) to send and selects Canadian Dollars (CAD) as the receiving currency. The system then prompts for the recipient’s details, which include:
Full name
Address
Bank name
Account number
SWIFT/BIC code
Canadian transit and institution numbers

Following the input of recipient information, the sender must fund the transfer. Common payment methods include:
Bank transfers
Debit cards
Credit cards
Some services also support options like PayTo or POLi in Australia.

After reviewing all the entered details for accuracy, the sender confirms the transfer. Most services provide a tracking number or notifications, allowing the sender and recipient to monitor the transfer’s progress until the funds are successfully deposited into the Canadian account.