The Tax-Free Savings Account (TFSA) just entered six-figure territory.
As of January 1, 2026, the Canada Revenue Agency (CRA) held the annual contribution limit steady at $7,000. That matches the limit from the prior two years.
But the cumulative effect is significant: any Canadian who has been eligible since the program launched in 2009 now has $109,000 in total lifetime contribution room.
Every dollar of growth, every dividend, every capital gain earned inside the TFSA belongs entirely to you. So here is the honest question: Are you making the most of it?
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Why most TFSAs are quietly underperforming
CRA data shows year after year that only a small fraction of eligible taxpayers fully max out their accounts. The average TFSA balance sits far below the lifetime limit, often dragged down by unused room and low-return assets.
And that second point is the real problem.
Millions of Canadians park their TFSA money in cash savings or Guaranteed Investment Certificates (GICs). Investing in GICs is ideal for those who have a low-risk appetite, such as retirees. However, this instrument struggles to outpace inflation over time.
Own stocks such as OR Royalties in the TFSA
If you are looking for a quality Canadian company to own in a TFSA, take a closer look at OR Royalties (TSX: OR).
OR Royalties, formerly known as Osisko Gold Royalties, is a Montreal-based precious metals royalty and streaming company founded in 2014.
The company does not operate mines directly. Instead, it acquires royalties and streams on producing and development-stage assets, collecting a percentage of revenue from its partners. This business model benefits from low overhead, minimal capital expenditure, and very high margins.
In Q1 2026, OR Royalties reported record revenue of US$102.8 million and a cash margin of almost 97%. It ended the quarter with US$94.9 million in cash and a debt-free balance sheet.
Chief Executive Officer Jason Attew described Q1 as “an impressive start” to the year, citing strong performance from the asset base alongside robust precious metals pricing.
The dividend story is equally compelling. OR Royalties just raised its base quarterly dividend by 18.2% to $0.065 per common share, payable July 15, 2026. The royalty company has now paid dividends for 46 consecutive quarters and offers shareholders a yield of 0.8%.
Beyond current performance, OR Royalties has been actively building its future asset base. In 2026, the company announced four new transactions, acquiring 13 new royalties and committing $438.5 million in new investments.
Key among them is an expanded 6% net smelter return royalty at Spring Valley in Nevada, a fully funded and fully permitted development asset expected to generate approximately 10,000 gold-equivalent ounces (GEOs) annually once in production, around 2028. Sell-side analysts calculated an average internal rate of return of 8.6% at spot prices for that deal.
The company’s annual GEO delivery guidance for 2026 is 80,000 to 90,000 GEOs, and management expects relatively balanced performance across the remaining quarters.
With roughly 75% of its producing GEOs in Tier 1 mining jurisdictions, including Canada, the United States, and Australia, OR Royalties carries a level of geopolitical safety that investors in the royalty space increasingly appreciate.
The Foolish takeaway
The $109,000 TFSA milestone is a reminder of what the Canadian government has handed every eligible investor: a generational wealth-building tool. But the tool only works if you use it correctly.
Check your contribution room through the CRA’s My Account portal. Then think hard about how you are using the space you already have. If it is sitting in cash, today is a reasonable day to change that.
Companies like OR Royalties, with record revenue, a growing dividend, and a built-out pipeline of future GEOs, are precisely the kind of business that compounds well inside a tax-free account.
