Moving a significant chunk of change like 85000 CAD to USD isn't just about punching numbers into a converter and hoping for the best. It’s a move that usually signals something big—a house down payment in Florida, a kid's tuition at a private college, or maybe just a strategic shift in an investment portfolio.
But here’s the thing: most people just look at the "mid-market" rate on Google and assume that’s what they’re getting. It’s not. Not even close, unless you know which levers to pull.
Right now, as of mid-January 2026, the Canadian dollar is hovering around the 0.72 mark. If you’re looking at 85,000 CAD, you’re basically talking about roughly $61,190 USD. But that "roughly" can cost you two grand if you walk into a big bank branch and ask the teller to do it for you. Banks love to tuck a 3% or even 5% "spread" into the rate. That’s their way of saying, "We’re charging you for the convenience," without actually calling it a fee.
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The Reality of the Rate (and the 2026 Outlook)
The loonie has had a wild ride lately. Back in early 2025, we saw some real dips toward the 0.69 range, and while it's clawed back some ground, the volatility is still very real. If you’re converting 85000 CAD to USD, you have to realize that a single cent of movement in the exchange rate changes your outcome by $850.
Think about that. A tiny flicker on a screen while you're eating lunch could be the difference between buying a new Macbook and... well, not.
Why is it swinging? It's the usual suspects: oil prices, interest rate gaps between the Bank of Canada and the Fed, and the general "risk-on" sentiment of the global markets. When the US economy looks like the only safe port in a storm, the USD climbs, and the CAD starts to feel the weight.
Why the "Bank Rate" is a Trap
Honestly, I’ve seen so many people just use their standard checking account for this. Don't do it.
The Big Five banks (RBC, TD, Scotiabank, BMO, CIBC) are great for safety, but they are notoriously expensive for currency exchange. For a $500 transfer? Sure, who cares about ten bucks. For 85,000 CAD? You’re handing over thousands of dollars in "hidden" costs.
Let's look at the alternatives:
- Specialized FX Brokers: Companies like MTFX or Interchange Financial often beat bank rates by a mile. They work on thinner margins because they handle high volumes.
- Fintech Platforms: Wise (formerly TransferWise) and Revolut are the gold standards for transparency. They give you the mid-market rate—the one you see on Google—and then charge a clear, upfront fee.
- Norbert’s Gambit: If you have a brokerage account and you’re not in a rush, this is the legendary "hack." You buy a stock that trades on both the TSX and NYSE (like DLR.TO), then ask your broker to "journal" the shares over to the US side and sell them. It’s basically the only way to get a near-perfect exchange rate, though it takes a few days to settle.
The Tax Man and the Paperwork
You can't just move $60k across the border and expect no one to blink.
First off, there’s the $10,000 rule. If you’re physically carrying more than $10,000 in cash or "monetary instruments" (like a traveler's check, if those still exist), you have to declare it at the border. If you’re doing a bank-to-bank wire, the banks handle the reporting via FINTRAC in Canada and FinCEN in the US. It’s not a tax, it’s just anti-money laundering protocol. They just want to make sure you aren’t a supervillain.
Capital Gains: The Sneaky Part
This is what people actually get wrong about 85000 CAD to USD.
If you bought those Canadian dollars (or held them in an investment) when the CAD was much weaker and you’re "selling" them now for USD, you might technically have a foreign exchange gain. In Canada, if your gain is over $200, it’s supposed to be reported as a capital gain. Most individuals ignore this for personal savings, but if this is business money, the CRA is definitely watching.
And for the Americans or Green Card holders living in Canada? You have it even tougher. The IRS treats currency like property. If you’ve been sitting on that CAD and the value has gone up against the USD since you "acquired" it, they might want a piece of the profit when you convert it back to your "functional currency" (the US dollar).
How to Actually Do the Transfer
If I were moving 85,000 CAD tomorrow, I’d follow a very specific checklist to make sure I’m not getting fleeced.
- Check the Spot Rate: Go to a site like XE.com or just Google "CAD to USD" to see the absolute base price.
- Get Three Quotes: Call your bank’s FX department (not the local branch teller), check the Wise app, and maybe look at a dedicated broker.
- Ask for a "Narrower Spread": If you’re using a bank, tell them you’re looking at a $85,000 transfer. They often have "preferred" rates for larger amounts that they don’t tell you about unless you ask.
- Watch the Clock: Don't trade on Friday afternoons or Sundays. The markets are "closed" or thin, and providers often widen their spreads to protect themselves against gap-downs on Monday morning. Tuesday through Thursday mornings are usually the sweet spot for the best liquidity.
What's the Move?
Converting 85000 CAD to USD is a high-stakes game of "who keeps the margin." If you go the traditional route, you’re basically paying for the bank's next holiday party.
If you want the most bang for your buck, look into Norbert’s Gambit if you have a discount brokerage account like Questrade or Wealthsimple. It’s the closest thing to "free" money you’ll find in the world of finance. If that feels too technical, a platform like Wise will still save you enough to buy a very nice dinner for you and ten friends compared to what a standard wire transfer would cost.
Just remember: the rate you see on your phone is the starting point, not the ending point.
Next steps for you:
- Log into your brokerage account to see if they support "journaling" shares for Norbert’s Gambit; it’s the cheapest way to handle a sum this large.
- Create a "Rate Alert" on a site like XE or Wise for your target exchange rate so you don't have to stare at the ticker all day.
- Check your bank’s daily wire limit, as $85,000 often exceeds standard online banking limits and might require a visit to the branch or a phone call to the "High Net Worth" desk.