Building collapse in Ismailia. Al-Ahram
The bodies of victims, which include a father and son, were retrieved from under the rubble.
The search is still underway to rescue any other victims who may be trapped under the rubble, the source added.
An order to remove the ramshackle three-storey building had already been issued, as it was deemed likely to collapse, a source at Ismailia governorate said.
The relevant prosecution has started an investigation into the incident.
Egypt has recently experienced a number of building disasters resulting in injuries and fatalities to residents, often due to old or compromised structures.
Four building collapses were reported in July in Cairo, Alexandria, and Beheira, claiming the lives of 19 people in total.
The deadliest of these killed 13 people in Cairo on 17 July.
Before this, in June, a 13-storey building collapsed in Alexandria, killing 10 people.