Is there a charge when transferring funds from Canada into a US account?

8 Replies

Hi there,

I was wondering if anyone would be able to answer my question. I am looking to borrow money from one of my investor friends who live in Canada. My attorney stated that this investor should be able to transfer money right into the attorneys escrow account with no problems. However, do we need to consider the currency exchange or are there any other fees we will have to pay from transferring this from Canadian account to American Account?

Any help would be greatly appreciated!! Thank you so much! 

I've made wire transfer oversea with citibank. The bank usually charges $25-$45 as wiring fee. If the currencies are different, the bank may charge exchange fee as well. 

Thank you @Jeff Chi  . I am in a major pinch to find money right now for my property that closes tomorrow (my buyer bailed on me last minute).. so if my Canadian friend transfers money from Canada to the the US, his bank might charge a fee as well as my attorneys bank? How does he process his amount knowing it will be what I need in US dollars?

Also how would I find out what the fee would be to change the currency? This house is becoming a nightmare for me! haha  The numbers are perfect! Just my buyer bailed :( 

@Jennifer Roth  

  are you really worrying about wire fee's  ???? this seems strange... its at most 50 bucks at your bank and about the same at the Canadian bank.. look on line for the exchange rates. I think the Loony is not at par with the US dollar.. I have not checked recently.. but say its at 90 cents and you need 10k  well then your Canadian friend would have to send 11k Canadian.. Or most banks in Canada will do the exchange in the bank there before they send the funds.. I used to have a home in Kelowna and they did this all the time when I brought money in and out of BC...

@Jennifer Roth  

I responded to {one of} your other threads in more detail.

We routinely wire monies to the US (2-4 times per month).  Banks will charge a wire fee - typically $25 - $30 for amounts <10K; a percentage for larger amounts.

The receiving bank in the US will also deduct a fee when they receive the Txfr ... just because they want to and can.

One thing to note.  When wiring money from a USD denominated account at a Canadian bank, your friend should explicitly tell them not to include the wire fees in the amount withdrawn from the account (or they will have to convert the funds at the bank exchange rate as opposed to a more favourable FX account rate) and either pay for them with cash or have the amount withdrawn from a CAD account.

Originally posted by @Jay Hinrichs :

@Jennifer Roth  

  are you really worrying about wire fee's  ???? this seems strange... its at most 50 bucks at your bank and about the same at the Canadian bank.. look on line for the exchange rates. I think the Loony is not at par with the US dollar.. I have not checked recently.. but say its at 90 cents and you need 10k  well then your Canadian friend would have to send 11k Canadian.. Or most banks in Canada will do the exchange in the bank there before they send the funds.. I used to have a home in Kelowna and they did this all the time when I brought money in and out of BC...

 The Loonie is presently floating around 0.88USD - a far cry from the 1.04 a year ago ... ah, the life of an oil-covered bird.

As mentioned before, you friend would be better off setting-up an FX account to exchange CAD => USD rather than at the bank - could be 3/4 - 1 point difference.

The other thing to keep in mind is all the lovely, not-so-new-anymore Homeland paperwork involved if you wire larger amounts (ie. >10K in some cases).

@Roy N.  

 I bought my home in Kelowna circa 2001  when the Loonie was at an all time low.. it was crazy.... I also made some hard money loans whilst I was in BC  and that was great I not only made my 15% interest but the Loonie strengthened against the dollar and I made money on the exchange rate.. it was then when I could see how currency arbitrage worked  it was an eye opener.. but so was loaning money in BC... not like the states if they don't pay its not as clear cut in the foreclosure aspect.... had I known that going in I would never loan in Canada... But I love it in BC what a great place..

You guys have been great! Thank you for all the helpful information! :) I truly appreciate all your time.