A woman is fighting for life after a bus and a ute collided and ploughed into a home in northern NSW.

Emergency services rushed to the intersection of Clydebank and Oakwood roads at Balmoral, in the Lake Macquarie area, about 6am on Friday following reports of the crash.

Police said the bus and ute slammed into each other before crashing into the house, trapping a woman and the bus driver in the wreckage.

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The woman, a passenger in the ute, was freed with multiple injuries and rushed to John Hunter Hospital in a critical condition.

The bus driver, a 72-year-old man, was also freed and taken to the same hospital in a stable condition with a suspected leg injury.

Emergency crews rushed in after a bus crashed into a home following a violent collision with a ute. Credit: 7NEWS

The bus ploughed into the house after a collision, leaving the property heavily damaged. Credit: 7NEWS

Three other occupants of the ute — the 43-year-old male driver, his wife and their eight-year-old son — were taken to hospital as a precaution.

The home suffered significant structural damage, but the two residents inside escaped unharmed.

Investigations into the crash are underway.

Anyone with information or dashcam vision is urged to contact Crime Stoppers.