Emergency services were called to the Newcastle St property at 5.45am on Sunday, after neighbouring residents spotted the flames.
The blaze ''totally destroyed'' the home.
A vehicle parked in the driveway was extensively damaged.
A neighbour had heard glass breaking and a vehicle leaving at speed, a police spokesperson said.
''Initial inquiries by fire investigators and police indicate the fire was deliberately lit.''
Police confirmed a man was arrested at the scene and charged with disorderly behaviour.
He is due to appear in the Alexandra District Court today.
Police are asking any local businesses with CCTV footage around the time of the fire to get in touch.
Fenz specialist fire investigator Marty Jillings could not comment on the fire as it remained an active investigation.
The property was unoccupied at the time of the fire but no details were available as to whether the property was tenanted.
-Alexandra police (03) 440 2500; Crimestoppers 0800 555 111.
