How does the interest rate fluctuate in a variable-rate mortgage?

The interest rate in a variable-rate mortgage fluctuates in response to the Bank of Canada’s changes to their overnight policy rate; also known as the BoC’s prime rate. The Boc meets 8 times a year and in response to market conditions & economic outlook, they will either raise, lower, or maintain the policy rate. Your variable rate mortgage will fluctuate in accordance with the BoC’s decision to increase or decrease their overnight policy rate.