Authorities say the massive hole opened under a house on Lambton Parade at Swansea Heads, near Newcastle, just before 7pm (AEST) on Tuesday.
Two occupants were evacuated but no one was hurt.
"The sinkhole, which is approximately 15 metres wide and 10 metres deep, opened under the brick home without warning," NSW Police said.
"The front corner of the house has collapsed and the premises have been extensively damaged by what is believed to be a disused mine shaft."
The Mine Subsidence Board has taken over the site, and it's expected the house and sinkhole will be examined by engineers on Wednesday morning.
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