Sending money home is one of the most practical and emotionally important financial activities for immigrants. Whether you're supporting family, paying a mortgage back home, or just sending a gift — the difference between doing it right and doing it wrong is hundreds of dollars per year.
Canada is one of the most expensive countries in the world to send money from if you use the wrong method. Here's how to do it right.
The true cost of sending money
When evaluating any transfer service, you need to look at two things — not just one:
- The transfer fee — the flat or percentage fee charged for the transaction
- The exchange rate margin — the difference between the real mid-market rate and what the service actually gives you
The exchange rate is where most money is lost. Your bank might charge a $20 fee but give you an exchange rate that's 4% worse than the real rate. On a $1,000 transfer, that 4% costs you $40 — plus the $20 fee. Total: $60 lost.
A service that charges no flat fee but has a 3% exchange rate margin costs you $30 on the same transfer.
Always compare the total amount received by the person on the other end, not just the fees listed.
Best options for sending money to LATAM
1. Wise — best overall for most transfers
Wise uses the real mid-market exchange rate (the same rate you see on Google) and charges a transparent fee of 0.4–1.5% depending on the currency pair.
Canada → Mexico (CAD → MXN):
- Fee: approximately 1–1.5%
- Exchange rate: mid-market rate
- Speed: 1–2 business days
- Recipient receives: the money in their Mexican bank account
Canada → Colombia (CAD → COP):
- Similar fees, usually 1–2 business days
How to use Wise:
- Create an account at wise.com (or use the app)
- Verify your identity (passport, takes 10 minutes)
- Add your Canadian bank account as a funding source
- Enter recipient's details and their bank account
- Send
You can also get a Wise multi-currency account with your own CAD, USD, and MXN account numbers — useful if you regularly deal in multiple currencies.
2. Remitly — best for speed when urgent
Remitly specializes in fast transfers, often with a "Express" option that delivers within minutes (for a higher fee) or "Economy" (1–5 days, lower fee).
Good for: sending money urgently to family for an emergency.
Fee structure: higher than Wise on the exchange rate, but the "Economy" option is competitive.
Remitly has strong partnerships with pick-up networks in LATAM — if your family doesn't have a bank account, they can pick up cash at partner locations.
3. Western Union and MoneyGram — only for cash pickup
Western Union and MoneyGram are the most recognizable names in international transfers. They're also among the most expensive for bank-to-bank transfers.
When they make sense: your family doesn't have a bank account and needs to pick up cash in person. Both have thousands of agent locations across LATAM.
When to avoid: bank-to-bank transfers. The exchange rate margins are typically 3–5%, significantly worse than Wise or Remitly.
4. Your Canadian bank — almost always the worst option
Canadian bank wire transfers typically:
- Charge $15–30 CAD flat fee per transfer
- Add a 2–4% exchange rate margin
- Take 3–5 business days
On a $1,000 transfer, this can cost $40–70 total. Use your bank only if you have no other option.
How much you should actually be paying
Use these benchmarks to evaluate any transfer service:
| Transfer amount | Maximum you should pay (total cost) |
|---|---|
| $200 CAD | $4–8 CAD |
| $500 CAD | $7–12 CAD |
| $1,000 CAD | $12–20 CAD |
| $3,000 CAD | $30–50 CAD |
| $5,000 CAD | $50–80 CAD |
If a service is costing significantly more than these benchmarks, switch to Wise.
Comparison: $1,000 CAD to Mexico
As of mid-2024, sending $1,000 CAD to a Mexican bank account:
| Service | Recipient receives (MXN) | Total cost |
|---|---|---|
| Wise | ~$13,200 MXN | ~$15 CAD |
| Remitly (Economy) | ~$13,000 MXN | ~$20 CAD |
| Western Union (bank transfer) | ~$12,500 MXN | ~$30–40 CAD |
| Canadian bank wire | ~$12,200 MXN | ~$50–70 CAD |
The difference between best and worst: ~$1,000 MXN (about $65 CAD) on a single $1,000 transfer. If you send money monthly, that's $780 CAD per year in unnecessary losses.
Practical tips for regular transfers
Set up recurring transfers
Wise allows you to schedule recurring transfers. If you send a set amount to family every month, automate it. You'll never forget and you'll always get a good rate.
Time your transfers
Exchange rates fluctuate daily. While timing the "perfect" moment is nearly impossible, avoid transferring right after major economic news or central bank announcements when rates are volatile.
Use multi-currency accounts strategically
If you have a Wise account, you can hold CAD, USD, and MXN simultaneously. When the MXN exchange rate is favorable, convert a larger amount and hold it in your Wise MXN balance. Send it to family over the next few months without needing to do new conversions each time.
Large transfers: verify your limits
Wise, Remitly, and most services have daily or monthly transfer limits. For transfers over $10,000 CAD, you may need to verify additional identity documents. Plan ahead for large transfers.
FINTRAC reporting
In Canada, all money transfer services are required to report transactions over $10,000 CAD to FINTRAC (Canada's financial intelligence unit). This is legal compliance, not a problem — but be aware that large transfers are tracked.
Tax implications of sending money home
Sending money to family in LATAM is generally not taxable in Canada — you're sending money you've already paid tax on.
However, if you're sending money as income (e.g., paying a family member for work they do for you remotely), that's a business expense and should be documented properly.
If you receive money from outside Canada (inheritance, gift, property sale), it's generally not taxable in Canada either — but amounts over $100,000 CAD from a foreign source must be reported to CRA on Form T1135. Missing this filing triggers penalties.
When in doubt, ask a Canadian accountant who works with international clients.
Money sent home is one of the most tangible ways immigrants contribute to their families and communities. Don't let fees eat into it. Wise takes five minutes to set up and will save you real money on every transfer for as long as you're in Canada.
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