Emergency crews were called out to a  massive fire that destroyed two homes in Panorama Hills and left two families homeless on Tuesday night.

The fire broke out at around 10:30 p.m. and when crews arrived they found a two storey house fully engulfed in flames.

The fire spread to a neighbouring home and it took fire crews nearly an hour to bring it under control

Investigators say 12 people were able to get out of the residence where the fire started and four others managed to get out of the neighbouring home safely.

One person was treated by EMS for smoke inhalation.

Julia Tian escaped the home with her parents and sister. "At first I wam in my room and I just heard the alarm going off and screaming outside, so I figured something was going on. We weren't sure, but when they knocked on the door and said it was a fire, so I was the first one out of my house."

Fire investigators believe the blaze started in the basement but it will be a couple days before they can get in and determine a cause.

The displaced occupants will be staying with friends and family for the duration.