A Saturday morning cottage fire in Muskoka caused over a quarter of a million dollars in damage.

The Baysville Fire Department with the assistance of the Huntsville Fire Department responded to the fire around 8:30 a.m. on Bay Street in Baysville.

Officials say a neighbour walking by the cottage spotted the flames and alerted the residents still sleeping inside.

The cottage had working smoke alarms but they didn’t go off since the fire entered the roof from the outside.

It took fire crews an hour to bring the fire under control.

Officials say the fire appears to have started at the back of the building and traveled to the roof.

The investigation continues and damage is estimated $350,000.00