Regional police have made an arrest in connection to a suspicious Christmas Day fire that left a Waterloo house with significant damage.

Shortly before 3 a.m. on Sunday, emergency crews responded to the home near Princess Street East and Peppler Street for reports of a fire.

Firefighters were able to extinguish the flames, but it caused significant structural damage.

Police say the home was being lived in, but it's unclear if anyone was home at the time of the fire.

On Tuesday, officers arrested a 38-year-old Waterloo man in connection to the fire.

He's being charged with arson – disregard for human life and utter threats.