Australian expats living in Canada and Canadians living in Australia are well familiar with the costs of international money transfers.
Banks in both Australia and Canada will take you for a ride, charging the highest fees for the worst value. The exchange rates they offer are always well off the mid-market rates. So when you pay more than CAD20 for a small international transfer to Canada, you’re also getting less than you deserve.
In recent years, this has led to a surge in the fortunes of commercial foreign exchange firms. Although they charge fees as well, these fees are low, and the exchange rate you’re getting is far better.
The following table demonstrates the top commercial FX firms for you:
Thousands of Private and Corporate Clients in Australia and Canada
11Bn In Trading Each Year
Easy Sign Up for Canadians and Australians
Payments Online or Via Phone
Only Handle Bank to Bank Wires
Money transfer when buying property in Canada
Taking out investments in Canada is a great way to generate passive income. Real estate is especially popular.
Although the 2008 subprime meltdown hit real estate hard, the market has since recovered, now is now a great investment. For a prime location in Toronto, you’ll pay around CAD640,000, which will bring you a big profit. Rental fees in Toronto stand at an average of CAD2,200 every month.
This will inevitably lead to regular transfers of sizeable amounts between the two countries. If you want to transfer from AUD to CAD through your bank, you’re going to pay around CAD12,800 all in all!
Using an independent money transfer company is therefore the far better option. They will charge an exchange rate markup of around 0.5% or less for a transfer of this size. Compared to the CAD12,800 charged by the banks, paying an FX firm CAD3,200 is a no-brainer.
Australians in Canada – a report
36,000 Australians live in Canada according to the latest census. This figure includes Canadian-born natives who claim Australian descent. British Columbia is known to be a particularly Australian location, with the ski-town of Whistler dubbed by some as Whistralia.
Many young Australians spend time in Canada to gain work experience. Getting a visa for a working holiday is relatively straightforward if you’re under 31. The cost of living in Canada is also considerably less than that of Australia, with rent approximately 34% cheaper.
As mentioned, getting a visa for a working holiday is easy. Australians do not need a visa when traveling to Canada to tour. You will need to apply for a work visa if you’re over 31 and plan on staying indefinitely.
Canadians in Australia – a report
There are over 27,000 Canadian citizens living in Australia. Australia has a much warmer climate, while having a similar culture to Canada.
Young Canadians especially are attracted to Australia, with their work prospects higher than their older counterparts.
Canadians do however need a visa to tour Australia, even for less than 3 months. As with Canada, getting a working holiday visa is relatively straightforward if you are under the age of 31. Getting a long term residence visa can take time. Make sure to apply well in advance, and find out if a relative has Australian citizenship.
The AUD/CAD pairing
The AUD is the fifth most traded currency in the world, with the CAD not far behind in seventh place. Over the past 10 years, AUD1 has been able to purchase between CAD0.71 and CAD1.07. The average has been approximately CAD0.95. In recent years, the currencies have maintained near-parity with one another.
Over 36,000 Australians are living in Canada, including Canadian-born natives of Australian descent. Money transfer fees are very significant for these expats, as well as people sending money to their families back home. Banks charge by far the highest rates, causing expats to fork out much of their hard-earned income. On the other hand, Forex firms charge minimal fees, making it more affordable to live and invest as an expat.
Many young Canadian citizens move to Australia, for the much warmer climate and the job opportunities. With a relative stability and near-parity in the AUD/CAD pairing, there should be no problems in transferring from one country to another, and working or investing can be very lucrative.
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