UPDATE 1.15PM: A video has emerged of the fire that tore through a Maryborough home in the early hours of Sunday morning.

It was taken by Jesse Schiemann, who drove past the fire with his family as the fire raged.

Police said it was still unclear what had caused the blaze.

UPDATE 2.50AM: A police spokesman said it was unclear what caused a house fire in Kent St, Maryborough, in the early hours of Sunday morning. 

He said investigations into the cause of the fire were continuing.

The spokesman said minor damage was caused to a home next door to the house that burnt down, but no one was at the property at the time.

He said there were acetylene bottles at the house that was destroyed.

The bottles had been exposed to the flames and needed to be hosed down.

EARLIER: One home has been destroyed and another has been saved by the quick actions of emergency crews after a fire broke out in Maryborough.

It is believed a home in Kent St near the sugar mill caught alight just after 12am on Sunday.

Ray and Leanne Muller were driving back to their home after giving one of their children a lift when Ray saw the flames from more than a block away.

"It was pretty bright when we seen it," he said.

"It was really intense."

Mr Muller said his wife made the call to 000 to alert emergency crews.

He said the house was empty and used for storage.

As the fire raged inside the empty house, Mr Muller said it also spread to the house next door.

But emergency services arrived in time to douse the flames.

"They saved the house next door but there's a big scorch mark," he said.

It is unknown whether there was anyone in the house next door.

More information to come.