Good news was recently announced for Tax-Free Savings Account (TFSA) investors. The Canada Revenue Agency (CRA) has increased the 2025 contribution limit by $7,000. While the contribution amount didn't increase over 2024, any increase is a win for Canadians.

The more cash you can invest tax-free, the quicker you can accumulate and compound wealth. In fact, by simply investing in your TFSA, you can save as much as 10–25% of your income/gains. While those savings may seem minimal in the near term, over years and decades they can be substantial.

If you were a Canadian resident and over 18 years of age in 2009, you have accumulated a grand total of $102,000 of TFSA contribution space. If you are married, you would have a combined family total of $204,000 to invest completely tax-free!

How $204,000 can become $1.3 million in a TFSA

If you invested that $204,000 and earned a projected 10% average rate of return for 10 years, your combined TFSA could be worth $1 million in as little as 16 years or less.

If annual contributions were to continue to grow by $7,000 annually, and you made those contributions and invested them at the same 10% rate, your total family TFSA portfolio could be worth $1.3 million in as little as 16 years.

Are you wondering about some stocks that could hit a 10% return target for a TFSA? These two quality Canadian stocks could be good candidates.

Canadian Pacific: A solid blue-chip bet for a TFSA

Canadian Pacific Kansas City (TSX:CP) is a 143-year-old company. Its operations have stood the test of time. Over the past 10 years, it has compounded total returns by a 10% compounded annual rate.

The company operates within a duopoly in Canada. That provides CPKC competitive benefits and strong pricing power over time. CPKC has a new advantage with its North America-wide network after its merger with Kansas City Southern.

The combination has opened an array of growth options through new infrastructure projects, circular routing, and customer options. Likewise, it continues to unlock cost and growth synergies from the merger. It targets mid-teens earnings per share growth for the coming five years.

Now, the new presidential administration could throw a wrench in those plans. However, if you think that tariff threats are mainly smoke and posturing, CPKC's stock is down 11% in the past few months, and it could be a good TFSA add today.

Colliers: A quality services provider for the long run

Colliers International Group (TSX:CIGI) is another nice TFSA candidate for above-average returns. It has delivered 12% compounded annual stock returns over the past five years and 14% compounded annual stock returns over the past 20 years.

Colliers is now a diversified services leader in commercial real estate, engineering/consulting, and asset management. A tough, rising interest rate environment was tough on its brokerage segment.

However, with rates rapidly dropping, Colliers is set to see a rebound in that business. That could help give a nice bump to earnings in 2025. Recent acquisitions in the engineering space could also provide another earnings boost in the new year.

For a stock with a high quality, highly invested management team, a strong brand and platform, and growth catalysts in the year ahead, Colliers is a great TFSA addition for 2025.