If you’re planning on buying your first home, then it’s essential that you take advantage of the different accounts available to you. Previously, potential homeowners have turned to Tax-Free Savings Accounts (TFSAs) in order to help build their home funds. This is a great way account to save up for a home, because any gains generated in this account can be withdrawn tax-free.
However, this year, the government released a new account, the First-Home Savings Account (FHSA). With this now available to be added to the mix, I believe all first-time home buyers should default to opening one of these accounts.
In this article, I’ll discuss three top stocks to buy in a FHSA to help you boost your home fund.
Tech stocks can help you build wealth
If I could only choose one stock to help me grow my house fund, I would choose Constellation Software (TSX:CSU). Just as you’d expect from any high-flying tech stock, Constellation Software stock has grown tremendously since it first started trading on the stock market. Despite all those gains generated over the past decade and a half, Constellation Software stock doesn’t appear to be slowing down whatsoever. The stock has gained about 23% over the past year, which outpaces the TSX by a wide margin.
This company is led by its founder, Mark Leonard. Historically, founder-led companies have managed to outperform peers led by non-founders, so Constellation Software should appeal to investors in that sense. In my opinion, as long as Mr. Leonard is active in the company, I would be very comfortable holding shares in my portfolio.
Don’t ignore blue-chip stocks
Although tech stocks could be a great way to generate gains in a portfolio, it’s important to diversify your holdings. With that said, there are some great blue-chip companies out there that can offer solid growth over the long term. Canadian National Railway (TSX:CNR) is a perfect example of this. One of North America’s largest railway companies, Canadian National operates nearly 33,000 kilometres of track.
Over the past five years, Canadian National stock has gained nearly 36%, dividends excluded. With such a large presence in an important industry, I believe this stock could continue to soar over the coming years. If you’re looking for a blue-chip stock to balance out your FHSA, Canadian National deserves consideration.
A dark horse stock for your portfolio
Finally, investors should consider buying shares of goeasy (TSX:GSY). If you haven’t heard of this company before, know that it operates two distinct business segments. First, it provides high-interest loans to subprime borrowers. Second, it sells furniture and other durable home goods on a rent-to-own basis. Because of the nature of its business, goeasy has seen an incredible increase in revenue since 2020, when the COVID-19 pandemic affected consumers.
That success translated into a gain of about 650% over a year and a half. Unfortunately, goeasy stock has stumbled since, falling nearly 60% from its all-time highs. Despite those struggles, the stock still sits at a gain of 145% over the past five years. That doesn’t even include goeasy’s dividend, which has grown at a compound annual growth rate of about 31% over the past nine years.
