Now that you are getting close to your final move, you will need some Canadian Dollars to get by. You may want to relax for the first few days and explore the city or you may get busy settling right away. Whatever you do, you will need to loosen your purse strings and keep some dollars handy.
Depending on your family size, IRCC will want you to have a certain minimum amount of money when you become a permanent resident. You may bring with you a portion of this amount or all of it or even more by converting it into Canadian Dollars.
You can check websites such as xe.com to see current exchange rates and that will give you a fair idea on how much of your local currency you will need to convert. However, you may get a sticker shock when you talk to your bank for the first time and they offer you an outrageously expensive conversion rate making you feel like walking away right then. You might feel like you are giving away tons of money just by exchanging it to a different currency. It’s not a small amount that you will be converting after all.
However, there are some cheaper alternatives to exchange your money. Back in 2016, when we moved, we used the following to transfer our money.
1. Forex Card
This was by far the cheapest way to exchange currency for us. We paid just a tad more over the exchange rate and it was very convenient and we regret not using it for even more. You can use it anywhere just like a debit card and you can load more money or check your balance online. Some of these cards will also let you withdraw cash from ATMs with a small charge.
- Pros – Cheap rates, easy to carry, can cancel and recover your money if lost or stolen, can be used as a debit card
- Cons – We can’t transfer that money into a bank account and our card didn’t allow online transactions either. Check with your card provider to see if there are any restrictions like that.
2. Travellers cheques
These used to be very popular decades ago but now they are fading into oblivion. However, we did get a good exchange rate on them, next only to the Forex card. Unlike cash, the amount can be recovered if stolen. More importantly, you can very easily deposit them in your bank account just like cash, the day you land.
- Pros – Good exchange rates, easy to deposit in a bank account
- Cons – Since these are not electronic, it may be a little difficult to recover money if you lose them and don’t have their serial numbers
3. Bank transfer
This was by far the costliest method to transfer money but also the most convenient. We used Scotiabank to open an account and transfer our money even before we moved. Many other Canadian banks also offer the same facility. The biggest benefit is that you are transferring money from one account to another, so there is no chance of carrying and losing your money in transit. It is as clean as it can get. However, do remember that you may see another small deduction when your money gets deposited because the receiving bank also charges a fee which you may not see while sending your money.
- Pros – Cleanest way to transfer money, start your regular banking from day one, you can transfer even before you move
- Cons – Much more costly to transfer
4. Cash
You don’t get good rates when exchanging for cash but it can be used anywhere where cards are not accepted. In your first few days in Canada, you may not have Canadian credit and debit cards and you may need some cash to get by. Also, some places may only accept cash so it’s good to have a few thousand dollars in cash handy.
- Pros – Easy to use, accepted everywhere
- Cons – Expensive to convert, can’t be recovered once lost
Overall, we would recommend spreading your eggs in multiple baskets and getting your money through different means to spread the risk. There could be other options that we didn’t explore but may make sense to you. We brought 20% of our money through Forex card, 30% through travellers cheques, 35% through bank transfer and balance 15% as cash. The proportions can vary depending on the rates you are getting or your convenience needs.