The transition to a market economy has brought dramatic changes to the system of housing finance in Slovenia. In this period the National Housing Fund emerged as the most proactive institution in housing policy. Until recently the Fund has had a dominant position in the provision of housing loans for individuals and non-profit housing associations. With the structurally inhibited supply, this has resulted in a persistent increase in housing prices. The development of mortgage financing and introduction of the National Housing Savings Scheme made it possible for the Fund to withdraw from lending to individuals and concentrate on the supply side. Although the Scheme was not flexible enough for the dynamic transitional environment, its introduction seemed relatively reasonable in 1999, and had an important role in transforming the way the housing policy intervened on the housing market. However, its terms in the current time only distort the market. Therefore, no new tender for the Scheme took place since 2003 and the provision of housing finance is now in the hands of the banking sector. Today, the Fund operates as a provider of financial resources mainly for the non-profit sector and as an investor in housing—in order to boost housing construction. In the future the government should restrict its position in allowing mortgage interest rate deduction or the subsidization of specific groups of potential homeowners, and support the secondary market with relevant legislation and necessary instruments. The Fund could find its role as an important player on the as yet undeveloped secondary mortgage market and in the provision of non-profit housing. It should also withdraw from construction and establish itself as a promoter of quality and sustainable housing construction.