A newly-built cottage in the Muskoka Lakes area went up in flames Friday night.

A passerby noticed the fire on Peninsula Road around midnight.

By the time firefighters arrived on scene the fire had engulfed the entire the 7,500 square foot structure.

Crews continued to douse hot spots through the night and into the morning.

Damage is estimated at $7 million.

The cause of the fire is still under investigation.

It was reported that the owner hadn’t yet moved into the cottage and was expected to start moving in furniture over the next week.