Hero neighbour saves three people from burning home in Melbourne

A neighbour's quick thinking actions have saved a family after their home was destroyed by fire in Melbourne's west overnight.

Liam Oakley called emergency services after noticing "red hot" flames coming from the home on Carinya Boulevard in Burnside about 12.25am.

He quickly ran into the two-storey brick home, helping save the residents, who were sleeping.

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"I saw smoke billowing. I just ran inside the house and I seen they were inside the lounge room," Oakley said.

"I just tried to get them out."

Fire Rescue Victoria (FRV) crews took just over an hour to bring the blaze under control.

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The home was significantly damaged by the fire, and the family will now need to find alternative accommodation, a week before Christmas.

Firefighters remain on the scene as they continue to extinguish and undertake fire duties.