Three others receiving medical treatment were rescued by neighbours. The cause of the fire is yet to be determined.
The accident occurred at the Koforidua Poly Junction in the Eastern Region, the police have confirmed.
They gave the names of the deceased as Mansa Alado, 7, and Prince Atsu, 4.
Among the rescued receiving treatment at the Koforidua Central Hospital is Atsupui Alado, a pregnant woman.
Assistant Superintendent of Police (ASP) Yaw Nketia-Yeboah, who is the Eastern Region Public Affairs Officer of the Ghana Police Service, advised all to observe strict fire safety measures in this dry season.
ASP Nketia-Yeboah urged parents to make sure naked flames like candles are not lit near combustibles.
He also said children should be educated as well to comply with fire-safety measures “in order to avoid such unfortunate but preventable accidents.”