It could be. Banks would not be reluctant at all, but only could be stricter if economy is very bad, because under BNM, banks are the main forces to push up the cash available to the country and support the government for acts.
However, it is part of the options available to my statement.
In bad economy, it can be the property price drop from bullish market, RM 600k to RM 400k, but value could be middle at RM 500k ( before subsequently drop later stages ) and if one is commitment not so heavy, he has the option to refinance the property based on RM 500k valuation although he cant sell the property at RM 400k.
If based on today's bullish market. The prop market value is RM 500k, but seller is over-bullish to ask RM 600k, so it's seller-buyer market. If no one buy the property at RM 600k and then 500k, it doesn't mean the property should value at RM 400k unless frequent transactions of the whole area, subsequently to the whole property outlook, which takes time for immediate effect.
That's why a lot of people always thought their property high selling price is always the price that should be value by banks or valuers. A prop valued at RM 700k 12 months ago, seller asking RM 770k. When few transactions made in good market, the value reached RM 800k and by the time it had reached, the seller asking price is RM 850-900k and claimed their properties were so hot until increase from RM 700k to RM 800k sold out easily for time being.
It is vice versa when the property prices drop heavily ( or speedily ) against valuation which drop even slower than it in the bad market, which we wouldnt wanted to see.
If the option to refinance is still there at bad times, I am fully covered. Kekeke.