As I said, the insured mortgage portion can be reduced because of the incentive without increasing the down payment. The stress test would apply, for example, on that reduced insured mortgage size.
Recall that the budget announced criteria for the incentive itself, not just the $120,000 income limit but the mortgage loan to income limit. The idea there is that the program parameters for the incentive targets the program to those most in need of support for housing affordability while maintaining the prudent lending standards, including the insured mortgage rules.