The young couple were woken to the sound of a car pulling into the driveway of their Keilor Park home.
The 33-year-old father ran to the front of his home at 10:50pm on Wednesday after hearing a car pull up outside, according to Victoria police.
The homeowner saw a group of six men running towards, then getting into, a Mercedes B G63 wagon before they allegedly drove straight at him.
Seconds later it’s alleged the gang broke into the home with machetes, where they demanded the family’s car keys while making threats towards their one-year-old baby.
The parents, who want to remain anonymous, said they handed over the keys and ran for their lives.
“It was no question in my mind that if they got a hold of us we were dead,” the 31-year-old mum told 9News.
”I was like ‘please, please, I have a baby, I have a baby’ [they said] we don’t give a f— about your baby.
“They were like demons, possessed.”
The father jumped over the fence as the mother passed their child to him, before going back to save their dog. She then followed her partner over the fence.
The family made it out to the street safely, where they were assisted by neighbours while waiting for police to arrive.
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The group then allegedly fled the home with the family’s white Volkswagen Golf before police arrived at the scene.
The couple said the incident has left them traumatised and they don’t want to return home.
“It’s not that we don’t feel safe here. It feels like we don’t feel safe almost anywhere.”
Investigators arrested four males at a home in Yarraville yesterday and charged three of them.
A 16-year-old was arrested and has been bailed to appear before a children’s court at a later date.
While a 17-year-old Wyndham Vale male along with an 18-year-old Albion man have both been remanded in custody.
Another male, a 22-year-old Yarraville man, has been released pending further enquiries.
Police are still looking for two more alleged suspects, described as being of African appearance.
Investigators are also hunting the grey 2016 Mercedes wagon with number plates: CAX285.
Police believe the parties were not known to each other.