A major house fire in Winnipeg on Friday morning was deliberately set after a fight arose over a $10 payment, according to police.

Emergency services first responded to the fire on Pritchard Avenue around 7:20 a.m. Friday. The house was eventually deemed a complete loss despite efforts to extinguish the fire, police said.

All individuals managed to escape the structure and no one was significantly injured in the fire.

The incident was deemed suspicious and an investigation was initiated by Major Crimes Unit.

Investigators now believe the incident started with three people consuming alcohol and using methamphetamine inside one of the units.

Police said a fight broke out over a $10 payment, and one person was removed from the suite.

This person then allegedly broke a large window before returning and threatening to retaliate, at which time the fire was set, police said.

Around 7:20 p.m. Friday police identified a suspect and investigators arrested a 17-year-old female youth at a hotel.

The teen has been charged with multiple offences including five counts of arson with disregard for human life.

Police said the entire house, including rooms belonging to three other tenants, became completely engulfed in flames and the house was completely destroyed.

The 17-year-old remains in custody.

With files from CTV Winnipeg