Canadian residents sent more than $5 billion to relatives abroad in 2017, according to a new study of international money transfers from Statistics Canada.
The study, released on Wednesday, found that 37% of people who were born in developing countries but are now living in Canada sent a combined $5.2 billion back home in 2017. Those remittances averaged $2,855.
These transfers generally face high transaction costs, with the average transfer fee eating up 6% of the amount being sent. StatsCan noted that, under the United Nations’ Sustainable Development Goals (SDGs), developed countries have committed to reduce these costs to less than 3%.
Over half (56%) of residents who send money home use money transfer stores. Ten percent delivered money in person, 9% used in-person banking and 5% opted for online banking to send money, StatsCan reported.
The top destination for these transfers was the Philippines, accounting for $1.2 billion, followed by India ($794 million), China ($292 million) and Pakistan ($236 million).
Additionally, $390 million was sent to the U.S., the study noted. Indeed, StatsCan found that 15% of these transfers ($761 million) went to developed countries.
The study also found that most of these transfers (59%) were intended to pay basic living expenses (food, housing and utilities). The other top uses are for medical expenses, or gifts.