Buying a property overseas is a major milestone, but it can also be an expensive process, especially if you’re transferring money through a bank. This recent article by the NZ Herald highlighted the shocking experience of a New Zealand father who transferred money to his daughter to help her buy a home in Perth, Australia. Using his bank for the transaction, he was hit with excessive exchange rate markups and hidden fees, costing him nearly twenty thousand dollars over the mid-market rate.

If you’re looking to send a significant amount of money overseas for a property purchase, it pays to look beyond traditional banks. By choosing a money transfer service like OrbitRemit, you could save tens of thousands of dollars.

The Hidden Cost of Banks

When transferring money internationally for property purchases, banks often present themselves as the safe, obvious choice. However, this convenience comes at a steep price. As highlighted in the recent NZ Herald article, banks typically charge:

• Exchange Rate Markups: Banks frequently offer exchange rates significantly higher than the mid-market rate, effectively hiding a substantial fee in the exchange rate itself. This markup can cost property buyers tens of thousands of dollars on large transfers.
• Undisclosed Fees: Beyond the obvious transfer fees, banks often layer on additional charges including receiving fees, processing fees, and correspondent bank fees. These charges aren’t always clearly disclosed, leading to unwelcome surprises.

The Real Impact on Property Buyers

As highlighted in the article, one family’s property transfer through their bank resulted in them being charged almost $20,000 above the mid-market rate. The family sent NZD$779,995 on December 13 2024 and only received approximately AUD$687,000 instead of the anticipated AUD$700,000. This isn’t an isolated incident – it’s a common experience for many New Zealanders and Australians transferring money overseas for property purchases. 

Putting this into perspective, using OrbitRemit for the same transfer would have resulted in substantial savings. When comparing the same NZD$779,995 property transfer, OrbitRemit’s competitive exchange rates and transparent fees would have resulted in the family receiving AUD$700,708.51. This would have been an additional AUD$13,696 in their pocket – money that could have gone towards setting up life in a new country. In this context, every dollar counts, and losing thousands to bank fees is an unnecessary expense that can be easily avoided.

Why OrbitRemit is the Smarter Choice

When transferring large sums for property purchases, OrbitRemit offers many benefits:

• Transparent pricing: We believe in complete transparency with our fees and exchange rates, so you know exactly what you’re paying upfront.
• Competitive exchange rates: Our rates are consistently better than traditional banks, meaning more of your money reaches its destination.
• Low fixed fees: Unlike banks with their variable fee structures, we charge a simple low fixed fee regardless of your transfer amount, and transfers over $10,000 are fee-free. 
• Local expertise: As a local company that operates on the ground in New Zealand and Australia, we understand the specific challenges faced when transferring money overseas for property purchases and are here to help with convenient, dedicated local support.
• Most trusted: With an Excellent 4.9 rating on Trustpilot and over 31,000 reviews, there’s a reason why OrbitRemit is the most trusted money transfer service in New Zealand and Australia. 

Property purchases are significant financial decisions, and while banks have traditionally been the default choice, services like OrbitRemit provide a far more cost-effective alternative. So before making your next international property transfer, consider this – why pay thousands extra in fees when you could keep that money for yourself and your family?

Ready to save on your international transfers? Visit OrbitRemit today to see how much you could save or speak with our team to learn more.