Fire brigades responded to a call at about 1.30am yesterday and arrived at the Austral Street home to find the fire "well on its way" according to Nelson Bay fire brigade captain John Stuhmcke. Five children were in the house, aged between two and 17, along with their grandmother and her partner.

Already an appeal has been launched to help the family.

Cash donations along with clothes, appliances and furniture can be dropped off at either the Epitome of Hair in the Cinema Arcade or the Police Citizens Youth Club in Austral Street, Nelson Bay.

Early reports indicate the grandmother managed to get the other children out of the house safely and suffered burns to her hands while trying to save the youngest.

Captain Stuhmcke confirmed fire crews were at the scene until 5.30am.

NSW Fire Brigade spokesman Superintendent Chris Jurgeit said the death had hit hard with members of the Bay brigade.

"They may or may not have known the family butthey live and work in the community," he said.

"They tried their guts out but apparently there was not much they could do."

"Counselling will be available.

Police and fire investigation crews are investigating.