The Rail Tram and Bus Union has called for all C-class trams to be pulled off the tracks after one derailed and smashed into a home in Kew last night.

Police were called to the house at around 11pm after a BMW veered onto the tram tracks along High Street, forcing the tram to derail and smash into the front bedroom, narrowly missing a man inside.

The home owner, Paul Wilson, said it was an extremely close call.

The MFB held fears the house could collapse due to the impact. (9NEWS)

“The tram hit and it jolted the bed, I’ve virtually just rolled out,” Mr Wilson told 9NEWS. “Another metre and I wouldn’t be here now.”

Phil Altieri, from the RTBU, said the trams have been “nothing but trouble.”

“Someone has got to put up their hand and say yes, these trams are safe,” Mr Altieri told 9NEWS.

“If they can’t do that they have to be off the road.”

Yarra Trams spokesman Simon Murphy said the derailment was “an isolated incident.”

“The type of tram involved in last night’s incident is irrelevant,” Mr Murphy said. “All of the trams on Melbourne’s tram network are safe.”

Emergency services at the scene in Kew. (9NEWS)

The driver of the BMW, a woman aged in her 40s, was trapped for a short time before she was taken to hospital with minor injuries.

The tram driver and passengers on board escaped unscathed.

The tram was safely removed despite it coming to rest over a gas meter, touching electrical wires overhead.

A 58-year-old woman was taken to hospital after the crash. (9NEWS)