Three dead and homes washed away by floodwaters in Dungog, north-west of Newcastle

Three people have died and four homes have been washed away by major flooding in the NSW town of Dungog, north-west of Newcastle.

This morning, an elderly woman and two elderly men were found dead in the township, in what has been described as a "catastrophic" weather event.

Premier Mike Baird said the severe weather was a "one-in-ten-year" event.

A video filmed by local man Jarrod Rits showed fast-moving flood waters sweeping a home off its foundations and along a street in the town centre.

Mr Rits spoke to Ben Fordham on 2GB radio about the incident.

He said he, his housemates and his neighbours had all assembled at the local pub, one of the town's safe spaces, when they had seen the house being washed down Dungog's main road.

"It was unbelievable," he said.

"In just a matter of minutes the water rose that much, I just couldn't believe it."

Mr Rits said the house had belonged to some of his friends.

"But we'll all come together as a town and try to help out as much as we can," he said.