Recently, my friend bought a property valued at RM 350k and in the bank letter of offer, it was mentioned that from its panel of valuers, the bank willing to lend 67.7%, which is RM 234,500. However, after signing the letter of offer, the real valuation was done and found that the property is actually valued at RM320k, and the bank is now willing to give up the loan of RM 216,640 (67.7% of RM 320k). There is a shortage of fund of RM 17,860.

The question is: the bank can do so - of lowering the loan amount? can my friend take action against the bank?

but, from my own experience, I think the bank has the right to do so, because in the letter of offer, it was mentioned that the loan amount cannot go above a % of the actual property value.

loan agreement signed, not yet disburse...