Fire and Emergency New Zealand responded to a call of a car fire in Ayrshire Dr at 1.45am on Saturday which badly damaged the garage and parts of the front of the house.
Mosgiel Fire Brigade senior station officer Scott Lanauze said he saw blue sheets of flame coming from the garage.
"Sometimes blue is an indication of an electrical type of [fire], but not always.
"We’re still following a lead of inquiry of the cause of the fire and our specialist investigator is looking into that for us."
Fenz initially responded to reports of a car fire which was later upgraded to a structure fire within the home’s garage.
"When we arrived on scene, we discovered a well-developed fire in progress within the garage," Mr Lanauze said.
A Mosgiel crew initially responded and was joined by units from Dunedin City, Lookout Point, Outram, Roslyn and St Kilda.
Crews were able to suppress the fire about 3am.
The home was fitted with working smoke alarms, which woke the two occupants of the house and allowed them to safely get out of the building and call 111.
A neighbour said there were two vehicles in the garage, one of them new.
"It’s just an engine now.
"Everything else is melted," the neighbour said.
