The victim, who police say is vulnerable and unable to walk without assistance, was allegedly targeted at his Docking Street unit in Wodonga about 8.40pm on Saturday.

It's alleged nearby resident Craig Raymond Simmonds, 45, donned a balaclava and armed himself with an axe handle before entering the home through a bedroom window.

Police believe the disabled man's pokies winnings were the intended target.

The 38-year-old was watching football when he was allegedly told to get on the floor before being tied up with his hands behind his back and a pair of socks stuffed in his mouth.

His shoes were removed and the laces tied around his feet.

Simmonds allegedly took the man's WAW credit card and searched through medication before trying to use a Westpac ATM on High Street.

The machine seized the card when the wrong pin was entered four times in quick succession. 

The victim managed to free his hands after five minutes and used a lighter to burn off the laces before getting a neighbour to call Triple-0.

He found the note under his door and Monday.

Simmonds, who is said to have a chronic drug addiction, was identified as a suspect.

He was intensely watching police on Monday as the crime scene was examined.

He was arrested and his home, and his partner's home, were raided which allegedly found the balaclava, and socks, clothes and an axe handle matching the description given by the victim.

Paper matching the extortion note and items from other burglaries were also seized, along with handwriting samples similar to those in the note.

Forensic evidence at the point of entry allegedly linked him to the crime.

A white Daewoo Simmonds had been driving after the offences was captured by security cameras at Subway on High Street before the ATM was used.

Simmonds faced an out-of-sessions court hearing at the Wodonga Police Station after his arrest and was denied bail to the Wodonga Magistrates Court on Tuesday.

He appeared uneasy sitting in the dock, and rocked backwards and forwards. 

The 45-year-old did not apply for release. 

“I was gonna go for bail but I didn't know what me chances would be like,” he told magistrate David Faram. 

Simmonds at times held his head in his hands, took deep breaths and appeared distressed. 

The magistrate asked his lawyer, Mario Vaccaro, if he was OK. 

“I don't feel well,” Simmonds replied before leaving the courtroom, leaning against a wall on his way out. 

He did not object to a sample of his DNA being taken. 

The court heard Simmonds takes a morphine-based medication for a chronic back injury. 

He is said to have bulges in a disc and broken vertebrae. 

Another charge was added during Tuesday's filing hearing. 

The matter will return for a committal mention on July 12.