The plane plummeted after getting entangled in power lines shortly after take-off from La Paloma airport in Puerto Montt, a port city 1,000 kilometres (600 miles) to the south of the capital Santiago, said Harry Jurgensen, the governor of the Los Lagos region.
Local television pictures showed the house, which caught fire after being hit by the plane, completely gutted.
The plane’s tail could be seen on television images lying in the garden of the destroyed house.
Authorities did not reveal the identity of the victims but said the pilot was amongst the dead — two women and four men.
No one was in the house when the plane hit.
The aircraft was owned by the “Archipielago” company, which operates commercial flights in a region that is difficult to access.
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