A 21-year-old Carlingford man, appeared via audio-visual link in Goulburn Local Court on Tuesday. Police charged him on Monday with one count of damaging property by fire or explosive to a value of more than $15,000.

The charge relates to the Commercial Hotel fire in Comur Street, Yass, at 2am Monday.

The man has been held in police custody since being charged on Monday afternoon.

On Tuesday in court, police prosecutor Gabrielle Coombs also applied for a detention application.

But duty solicitor Matt Adam said his client had received mental health treatment for schizophrenia.

"I have concerns that he doesn't understand the matters before him," he said.

He sought an assessment for the defendent at Goulburn's mental health facility, the Chisholm Ross Centre.

The court heard that ambulance crews were twice called to Goulburn Police Station following the man's arrest.

Ms Coombs said that while ambulance officers were not "mental health professionals" their attendance did not result in the accused's admission to Chisholm Ross. She asked that the detention application be granted.

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Magistrate Geraldine Beattie said while he appeared "quite calm on screen," Mr Adam had expressed concern about the defendent's ability to understand the charges and voiced fears for his client's personal safety.

She told the court she noted the "serious nature" of the allegations at Yass, police allegations tendered to the court, "admissions" made by the defendent to officers during interview but also the issues raised by Mr Adam about his mental health.

Magistrate Beattie ordered that the man undergo a mental health assessment at the Chisholm Ross Centre before reappearing in court. No adjournment date was set.

She dispensed with a ruling on bail.