The housing finance system in South Africa has mainly been inadequate in addressing the country's housing challenges. A shortage of affordable housing, high levels of debt and financial stress among homeowners, and a lack of access to housing for many characterise the housing finance system. These challenges are a legacy of South Africa's historical inequalities, economic constraints, and a lack of political will to provide low-income housing, especially for the urban poor. Despite various government initiatives and policies like the Reconstruction and Development Programme (RDP), many South Africans struggle to access adequate housing. Against this background, the chapter argues that government initiatives and policies have not been sufficient to address the scale of the housing problem. Employing a desktop approach, this chapter documents the housing statistics in South Africa and how the government responded to housing delivery for the urban poor. To this end, the chapter analyses the policy decisions made by the government to curb the housing challenges. The study's findings show that the current housing finance system is inadequate with providing accessible, affordable housing for all South Africans. The government's housing subsidies and grants have often been insufficient or poorly targeted, leading to a lack of meaningful impact on the overall housing situation. Therefore, this chapter urges the South African government to improve the effectiveness, efficiency, and accessibility of the existing housing finance systems, create and devise innovative housing finance mechanisms and instruments, and promote equal and affordable access to housing finance for all people. This chapter suggests reforms to the housing finance system in South Africa and advocates for alternative financing options and approaches to prioritise the needs and rights of marginalised communities and address the housing crisis's underlying causes, including historical injustices and economic inequality.