I'm not sure if someone here faced the same problem before, but I hope maybe someone can answer my doubts.

When someone applies for a mortgage the banks will usually ask their valuers for a quotation of the property. In most of the cases the process is just done verbally, ie. the officer calls the valuer, giving him details (address, land area, bumi or non-bumi, renovation) and the valuer will tell you how much they THINK the property worths.

While some banks have a long lists of approved panel valuers, some have just one or two. It means that if customers are not happy with the market value given, the officer can only wave goodbye to their commission.

Even when they agreed about everything during application, there will still be some potential problems after the loan agreement is signed and stamped.

The banks will only send out the valuation instruction to the valuer when the customer decided to take up the offer. Now what the valuers do is they will go to the exact place to inspect the property. If they find out the current market value they gave before is too high they will just change it and send the valuation report to the bank, and job's done.

When the bank receives the report, they will check whether the CMV will affect the max MoF or not. In some cases, when the valuer decided to lower the verbal CMV after inspection, and the new MoF does not exceed the max allowed, then there will be not many problems for draw down.

While in most cases when customers apply for a 90% (max) loan, the MoF will sure be slashed and as a result, customers will have to find their own ways to top-up the amount or to cancel the loan.

For example, the verbal CMV is 200k, and 90% MoF is 180k. After inspection the valuer reduces the CMV to 190k and thus the 90% (max) MoF has to be reduced to 171k. Customer has to top-up 9k as a result.

Now here's my problem:

1. If someone has to be responsible, that will be whom?
2. Is there any way customers can do to not cancel the loan while still get the 180k loan at 94.7% MoF?
3. Can they complain? To Bank Negara?

Any answers will be very much appreciated. Thanks.

Doubtful - financing documents are subject to valuation, and any changes in valuation. In print.

The bank has the right to decide.
They are not obliged to accept fully the valuer's findings.
So nobody should & will be held responsible.

As a customer, you have the right not to accept the bank's loan offer. You will not be penalised. But whatever application fee, processing fee, documentation fee you paid is non-refundable.

And how the whole thing involves BNM when nobody's at fault.

1. If someone has to be responsible, that will be whom?
better inform to bank officer or valuer upfront everything eg whether face t-junction and do not give excessive renovation amounts etc etc

1. No one would be held liable in this case, as far as I concern if like the mentioned situation (I might be wrong)
2. Try another bank to see whether others willing to give or not.
3. Bank Negara won't accept the complain, as everything is done is proper order.

For loan or ant financial instrument, it is done on willingness basic, banks have the right to loan or not to or how much they want to lend. There is no obligation for banks to lend out their money if they don't wish to.