Isaac Henderson, 18, appeared in court on Thursday after Tony and Mel Christensen discovered him asleep in a bed in their Donvale house on December 29.

The couple filmed Mr Henderson while he slept and as he woke up, and police allege he jumped out of the bed and held a knife to Ms Christensen's neck and threatened her after her husband began searching the rest of the house.

Mr Henderson was arrested on Wednesday and charged with burglary and criminal damage, and on Thursday applied for bail in Ringwood Magistrates Court.

Senior Constable Brendan Keane said Mr Henderson told police he had been walking around Donvale to "cool off" after an argument with his father, who also lives in the suburb, but had become lost.

Mr Henderson told police he broke into the Christensens' house for shelter and to get food and recharge his mobile phone, Senior Constable Keane said. The couple were not at the house at the time, having recently sold it.

Police allege that as the teenager held the knife at Ms Christensen's neck, he told her: "I'm going to hurt you."

Ms Christensen was unhurt and Mr Henderson ran from the house, the court heard.

Defence counsel Amanda Upton told the court Mr Henderson denied holding a knife, and instead had been in possession of a metal chicken skewer. He also denied making the verbal threat, the lawyer said.

Under cross-examination, Senior Constable Keane said Ms Christensen was "adamant" she was threatened with a knife, but he conceded it was plausible the weapon was a chicken skewer. Neither implement was found.

Senior Constable Keane said he accepted Mr Henderson's motives for staying in the house.

The policeman said he and colleagues found Mr Henderson in the backyard of his mother's Hampton Park home on Wednesday, and that he threatened to "put the f---ing dog onto" the officers. They successfully negotiated a peaceful arrest.

The court was told Mr Henderson did not have stable accommodation either with his father or with his mother, but that his mother's cousin had offered to let him stay at his Cranbourne home.

Ms Upton asked magistrate Marc Sargent to grant bail on Thursday for him to return to court on Friday.

But Mr Sargent said he was disturbed the teenager had brandished a weapon and threatened a woman "in circumstances where it was completely unnecessary".

Mr Henderson was remanded in custody to return to court on Friday, when the bail application will continue.

Police have opposed his bid for bail over concerns he would offend if released from custody. The Christensens were concerned the teenager would return to their house, the court heard.

Mr Henderson blew a kiss to his mother when brought in to court and when taken back into custody. His father was not in court.