Rental Property in Canada with Under Market Rents

Hi,

I'm a canadian citizen living in the US, legally authorized to work in the US.  

I have two rental properties in Canada. If one of them were rented for under fair market value rent, from my understanding I am supposed to do the following:

1. type in the rental income in the Miscellaneous Income--> Other reportable income section.

2. Type in the rental expenses in the Other Deductible Expenses--> Less Common Deductions, and itemize my rental expenses.

Is this correct?

I also do not own a house in the U.S.    Am I able to deduct the mortgage interest paid in the Other deductible expenses section (with the other rental expenses)?

THanks in advance for your help!