Depending the property is your personal residence or rental property (i.e. you rent it out earn rent revenue)
Mortgage penalty is only deductible if and only if you move and establish a new home to be employed or carry on a business at a new work location.
To qualify, your new home must be at least 40 kilometres (by the shortest usual public route) closer to the new place of work or educational institution.
For example, if you move from Toronto to Ottawa because of your new employment in Ottawa. You can deduct your mortgage penalty. However, if you move within the city (i.e. within 40 km of your workplace). You will not be able to deduct the mortgage penalty.
If this your rental property, you can deduct the mortgage penalty over 5 year periods.