Wire fees

[Madame]

I'm wondering if the banks of all title companies are charging to receive the deposit & if so how much. Example - we had to pay our bank $30 CAD to wire the deposit, *** (Iberia bank) charged us another $45 USD for the deposit to be accepted. If we get ROFRed we'll get charged another $10 USD by our bank to receive our deposit back.

Now in the grand scheme of things it doesn't seem like much, but you get ROFRed a couple of times and you're looking at a couple of hundred bucks... For nothing. Especially if you're Canadian & have to add 36% echange on the $55 USD.

I'm assuming there's no way around these fees? No way if you are ROFRed and try again to have the title company keep the deposit to be applied to the next contract?

I swear I'm not cheap, but I can't stand throwing away money.

 

[disneynutz]

As a DVC member and repeat Disney goer, the wire fees are nothing in comparison.

 

[supersnoop]

Open a US based bank account and write a check. Or use a credit card for the deposit.

 

[tikkipoo]

I work for a title company. Our bank charges us for incoming and outgoing wires. My personal bank also charges for outgoing wires.

 

[Madame]

As a DVC member and repeat Disney goer, the wire fees are nothing in comparison.

You're absolutely right! I'm always on the look-out to save a buck though & my DH is in investments so he makes me look like an amateur . You'd think that when you're a bank employee they'd cut you a break on the fees .

 

[Madame]

I work for a title company. Our bank charges us for incoming and outgoing wires. My personal bank also charges for outgoing wires.

That's what I figured. So I guess we'll just suck it up!

 

[Madame]

Open a US based bank account and write a check. Or use a credit card for the deposit.

Thanks for the suggestions. A US acct would take some time to set up & probably not worth the time nor the monthly fees if we kept it. They didn't give us the option to use a credit card. I'm not sure international buyers are given that option. The instructions specifically stated a wire.

I'm just going to hope we don't get ROFRed, but build possible future fees into my budget.

 

[DVCcurious]

If it makes you feel any better the banks are charged a fee to send wires so it's not like that $30 is all profit to them.

 

[pangyal]

I've paid all of our deposits via CC and we are also in Canada. In fact, the extra $45 credit card fee was then always applied against the remainder along with the original deposit amount. However, sometimes you have to ask the title company for their credit card escrow instructions and a form. I know it's too late now, but maybe this will help in the future !

 

[Madame]

I've paid all of our deposits via CC and we are also in Canada. In fact, the extra $45 credit card fee was then always applied against the remainder along with the original deposit amount. However, sometimes you have to ask the title company for their credit card escrow instructions and a form. I know it's too late now, but maybe this will help in the future !

Yes it does! Thanks so much .

 

[mab2012]

I'm wondering if the banks of all title companies are charging to receive the deposit & if so how much. Example - we had to pay our bank $30 CAD to wire the deposit, *** (Iberia bank) charged us another $45 USD for the deposit to be accepted. If we get ROFRed we'll get charged another $10 USD by our bank to receive our deposit back.

Now in the grand scheme of things it doesn't seem like much, but you get ROFRed a couple of times and you're looking at a couple of hundred bucks... For nothing. Especially if you're Canadian & have to add 36% echange on the $55 USD.

I'm assuming there's no way around these fees? No way if you are ROFRed and try again to have the title company keep the deposit to be applied to the next contract?

I swear I'm not cheap, but I can't stand throwing away money.

I have to say, I've been blown away by how difficult (and/or expensive) it is to move a little money around in 2015, particularly across international borders.

My contract has been handled by TT&M. I was able to send a deposit via personal cheque drawn on my US bank account (that is, my bank account in the US, not a US dollar account in Canada). The contract specifically stated that this needed to be sent overnight. For the $20-$30 it would have cost to overnight the cheque, just to get it there a couple days sooner, I decided to take my chances with regular mail. It was fine.

For final payment, I asked in advance what the options would be. I was told they would accept a domestic bank draft (they call it a cashier's cheque) or wire. They will not accept personal cheques of any kind, nor an international draft written in US funds. Fine. The trouble for me is that my US bank account, at the time, was at a division of BMO that operates in the midwest. The nearest branch is somewhere in Illinois. I am in Ottawa. Can't initiate a draft or a wire by phone. Not so convenient. So I looked at sending an international wire. I bank with Scotiabank. If you can believe it, they don't appear to offer outgoing wire services on personal accounts. I'm sure that if I pushed for it, they would do it, but it's not an advertised service. Instead they offer a partnership with Western Union. Cap of $1000 per day online, or $7500 at a branch, at a cost of $9 plus 1%. Absurd.

I didn't really want to send funds from a CAD bank account anyway, because I wasn't willing to risk what the exchange rate might do in the meantime. So I looked at opening USD accounts in Canada, but they all come with fees that I don't care to pay, for an account that I don't really need in the longer term. Plus then I'm still looking at an international wire.

In the end I opened a US based account with TD bank. The account has a $100 minimum balance; no fees. There is a branch within reasonable driving distance of my house (albeit not exactly close, at about 3h away). My closing documents just came in; I will drive to the bank sometime in the next week or so to get the cashier's cheque, and mail the documents domestically while I'm down there. That said, I do need a US bank account anyway, and I feel better knowing that I can get to a branch when I need to. Not sure if would have been worth it if I didn't need the account in the longer term. Ultimately I will close the Chicago based BMO account.

Of course there is a cost both in time and money to get to the bank, but I wanted to make a US run to pick up a package anyway. And when you consider that the closing company wanted $60 US to accept an incoming international wire transfer, plus whatever the bank would have charged for the outgoing fee... I'm still ahead on the cost. But it's absolutely ridiculous how difficult the whole thing has been.

Those who don't have a US bank account might consider XE Trade. They will deliver funds by wire or draft, at a lower exchange rate and transfer fee than most banks. The only downside of this approach is that you will be subject to whatever the exchange rate is on the day of the transaction.

Sorry, most of this probably doesn't help you. I'm just commiserating. I also hate wasting money. If that makes me cheap, I'm okay with that.

 

[Madame]

I have to say, I've been blown away by how difficult (and/or expensive) it is to move a little money around in 2015, particularly across international borders.

My contract has been handled by TT&M. I was able to send a deposit via personal cheque drawn on my US bank account (that is, my bank account in the US, not a US dollar account in Canada). The contract specifically stated that this needed to be sent overnight. For the $20-$30 it would have cost to overnight the cheque, just to get it there a couple days sooner, I decided to take my chances with regular mail. It was fine.

For final payment, I asked in advance what the options would be. I was told they would accept a domestic bank draft (they call it a cashier's cheque) or wire. They will not accept personal cheques of any kind, nor an international draft written in US funds. Fine. The trouble for me is that my US bank account, at the time, was at a division of BMO that operates in the midwest. The nearest branch is somewhere in Illinois. I am in Ottawa. Can't initiate a draft or a wire by phone. Not so convenient. So I looked at sending an international wire. I bank with Scotiabank. If you can believe it, they don't appear to offer outgoing wire services on personal accounts. I'm sure that if I pushed for it, they would do it, but it's not an advertised service. Instead they offer a partnership with Western Union. Cap of $1000 per day online, or $7500 at a branch, at a cost of $9 plus 1%. Absurd.

I didn't really want to send funds from a CAD bank account anyway, because I wasn't willing to risk what the exchange rate might do in the meantime. So I looked at opening USD accounts in Canada, but they all come with fees that I don't care to pay, for an account that I don't really need in the longer term. Plus then I'm still looking at an international wire.

In the end I opened a US based account with TD bank. The account has a $100 minimum balance; no fees. There is a branch within reasonable driving distance of my house (albeit not exactly close, at about 3h away). My closing documents just came in; I will drive to the bank sometime in the next week or so to get the cashier's cheque, and mail the documents domestically while I'm down there. That said, I do need a US bank account anyway, and I feel better knowing that I can get to a branch when I need to. Not sure if would have been worth it if I didn't need the account in the longer term. Ultimately I will close the Chicago based BMO account.

Of course there is a cost both in time and money to get to the bank, but I wanted to make a US run to pick up a package anyway. And when you consider that the closing company wanted $60 US to accept an incoming international wire transfer, plus whatever the bank would have charged for the outgoing fee... I'm still ahead on the cost. But it's absolutely ridiculous how difficult the whole thing has been.

Those who don't have a US bank account might consider XE Trade. They will deliver funds by wire or draft, at a lower exchange rate and transfer fee than most banks. The only downside of this approach is that you will be subject to whatever the exchange rate is on the day of the transaction.

Sorry, most of this probably doesn't help you. I'm just commiserating. I also hate wasting money. If that makes me cheap, I'm okay with that.

I agree it's a massive PITA & a money grab on the part of the financial institutions. I feel your pain & I only live 40 mins from the border .

 

[pangyal]

Not to hijack the thread, but I have an account with RBC that makes it absolutely seamless to move funds between Canada and the US. I send wires over the phone for $25 within the US and they arrive the same day. The account costs $3.95 per month with no minimum balance. Just FYI if you are looking to do more business with and/or within the US.

 

[mab2012]

Not to hijack the thread, but I have an account with RBC that makes it absolutely seamless to move funds between Canada and the US. I send wires over the phone for $25 within the US and they arrive the same day. The account costs $3.95 per month with no minimum balance. Just FYI if you are looking to do more business with and/or within the US.

Thanks for the info. I've looked at the RBC offerings, but I don't really want or need the Canadian USD account (and the fees generated on it). If I banked with RBC to start with, I'd probably be all over that solution, but all our Canadian accounts are at Scotia and I'm not keen to move them.

The TD offering is similar (easy transfer between Canada and the US if you have a Canadian account with them), and they have a great presence on the US East Coast. I'd hoped that they would initiate a wire transfer by phone, but no luck. That's a very useful feature of the RBC account. I'll definitely keep it in mind

 

[ColinBlair]

TT&M's bank is PNC. If you have a checking account at PNC then you can walk into any branch and have the bank do a direct transfer from your account to their account for no charge. Just send a copy of the receipt to TT&M and you are done. That is what I did.

 

[rcchello]

Check your brokerage, I use Schwab and there is no fee to transfer money within the U.S. and I can do the transaction online. I do not know about Canada.