Michael Schindler fronted the Wodonga Magistrates Court on Thursday following the blaze last November. 

He appeared in prison greens, having been taken back into custody for domestic violence offences while on bail for the arson attack.

The 58-year-old went to the Victoria Street home on November 2 and set it on fire, telling his wife “I can't believe what I'm about to do". 

The building, which was co-owned by his wife, was gutted.

He had separated from her only a few weeks earlier. 

Schindler was asked on Thursday how he pleaded to charges of criminal damage by fire and persistently contravening a family violence order.

"Guilty your honour," he replied.

He did not apply for release ahead of his sentencing, which will occur in the Wodonga County Court some time after May 7.

Family members attended Thursday's hearing.

His mother said "I love you" before breaking down in tears.

After magistrate Peter Mithen refused bail, his mother had a request.

"Please, can I give my son a hug?" she asked the magistrate.

He replied that it was not appropriate.

"I can't allow that at this stage," Mr Mithen said.

Schindler is also charged with committing an indictable offence on bail, which will be transferred to the higher court with the fire offences. 

It remains unclear why Schindler torched the property.

The court previously heard the 58-year-old had been seen leaving the smoking property. 

Seven points of fire were found, including fuel poured in a rear bedroom and on top of a piano. 

He had gone into hiding immediately after the incident but handed himself into police the following day.

Schindler was bailed last November but persistently breached a family violence intervention order from Christmas Eve to January 3, resulting in his re-arrest.