The quiet cost in every cross-border purchase is the exchange rate

What the conversion really costs

Banks rarely charge a visible fee for currency. They earn a spread: the gap between the rate they give you and the market rate. On large transfers a traditional bank or broker typically keeps about 1.5% to 2.5%.¹ Specialist currency firms and private banks often work for considerably less on large amounts. Ask, and compare written quotes.

On a single purchase, the difference can cover a good part of your closing costs.

Four ways to convert

1. Your own bank, on the day. Simplest, and fine for smaller amounts. On a large transfer, ask for a better rate before accepting the screen rate. Private-banking clients usually get one.
2. A specialist currency firm. Regulated foreign-exchange providers move money for property buyers every day, usually with tighter rates and a dedicated contact. They convert your funds and wire the U.S. dollars to the closing agent.
3. Lock the rate in advance. Once your contract is signed, a forward contract can fix today's rate for a closing weeks or months away. You give up any gain if the rate moves in your favour; in return you know your exact cost.
4. Through an investment account. Some investors, Canadians especially, convert by buying a security listed in both currencies and selling it on the U.S. side, a technique known in Canada as Norbert's Gambit.² It takes care with timing and settlement. Ask your own investment adviser whether it suits you.

Wiring the funds safely

Call before you wire. Criminals send emails that look like they come from the closing agent, with "updated" bank details. Before every wire, phone the title company or closing attorney on a number you found yourself, not one in the email, and confirm the instructions. Legitimate closing agents expect that call.

Allow time. International wires usually arrive in one to three business days, longer over holidays and across time zones. Funds normally need to reach the closing agent before closing day, so send them several days early.

Keep the paper trail. The closing agent, the lender and your own bank may ask where the funds came from: bank statements, a sale of investments, a gift letter. Gather these early. Your home bank may also report a large international transfer to its regulator; that's routine and isn't a tax.

After you own: paying bills in dollars

Owners abroad pay the association, property taxes, insurance and utilities in U.S. dollars every year. A U.S.-dollar account makes that much easier, and several international banks can open one before you arrive. Fund it a few times a year at good rates rather than converting each bill.

How we help

We map out the timeline with you: when to convert, when to wire, and which documents to have ready. Then we introduce currency specialists and cross-border banks, all independent, so you can compare and deal with them directly.

Planning a purchase? Tell us your timing and we'll sketch the money side with you.