At 11pm on Tuesday, resident Kristy Mann ventured outside her home to find her neighbour's home on fire.

The house, located at 125 Bourke Street in Mount Austin, had been up for lease for the past couple weeks.

"I came out and heard a smoke alarm, but I didn't know where it was coming from," Ms Mann said.

"I got around the corner of my house and saw the flames. It was a few feet in the air, so I grabbed the hose and started working on my side of the house. It was steaming."

Ms Mann called triple zero and, with another neighbour, continued to defend her home with a garden hose.

She said she was particularly concerned for the spread of the fire as her children were asleep inside the house, behind the wall that was being threatened by the growing flames.

"It was so hot it's peeled the paint on my guttering, it got pretty warm," Ms Mann said.

From her perspective the fire's intensity centered around the rear of the house.

"I came outside and saw the flames and it looked like that whole back room was engulfed, the the windows popped out," Ms Mann said.

Fire crews attached to Turvey Park and Wagga arrived at 11.02pm, and promptly subdued the blaze by 11.07pm, according to Turvey Park station commander Phil Knightingale.

"There were several points of ignition to it," said Commander Knightingale.

"When we got there, it was coming from the front and the back [of the house]."

Police are currently still investigating the cause of the fire and remained camped outside the house throughout the night and early morning.

Inspector Peter McLay has anyone with information to come forward immediately.

"Crime scene police are currently in attendance. Anyone with information is urged to contact Wagga police or Crime Stoppers," he said.

But Commander Knightingale is of the opinion the fire was "deliberate and malicious".

Aside from the speculation, Ms Mann said she was grateful the fire did not eventuate in anything more dramatic.

"Luckily I was still awake when it happened," she said.

"Nothing like this has ever happened here before."