Neighbours say he was "raving" on his rooftop before specialist police forced their way inside due to concerns over Mr Pusey's welfare after he refused to let officers inside.
"Responding officers held concerns for the welfare of those involved after it was reported people could be heard yelling and windows were being smashed," a police spokeswoman said.
"The resident of the home was contacted by police but did not provide access to the property.
"Police cordoned off the area, and critical incident response team officers negotiated with the man before he surrendered to police without incident."
Mr Pusey, 42, was found on the roof and taken to St Vincent's Hospital for assessment.
Lawyer Chris McLennan told NCA NewsWire his client was "lucid" and "seemed to be OK".
One neighbour said Mr Pusey started "blasting" loud dance music about 9pm.
He said he thought it was about midnight that he heard loud shouting and discovered Mr Pusey was "ranting" on the rooftop of his apartment.
"If I remember correctly, he was saying: 'You broke her heart'," he said.
"Oh, he was raving. It would go soft for a little bit and then it would get loud again."
The neighbour said it was the first time he had heard Mr Pusey ranting on his rooftop.
But he said the apartment was known to locals due to frequent loud music playing at all hours.
There also seemed to be multi-coloured flashing disco lights installed in the "beautiful" apartment.
"The issue the neighbourhood has is that he plays what I'd describe as dance music really loud and sometimes late at night," the neighbour said.
He said he had been forced to purchase noise-cancelling headphones for a family member specifically because of the loud music playing in Mr Pusey's apartment at late hours while they were trying to sleep.
"It's increased recently," he said.
"It was quiet for a while, and in the last three weeks or something it seems to have ramped up.
"All the neighbours want is peace and quiet and to live without disturbance."
Footage of the incident allegedly shows Mr Pusey yelling from the roof as red and blue emergency lights illuminate the street.
A woman was also home at the time but was not injured and is assisting police with their investigation, Victoria Police said.
On Monday morning, the entry to the mortgage broker's house had been blocked off with wooden boards.
The metal door where police forced their way in was bent and buckled, and shutters had been pulled down on all six street-facing windows.
Police executed a search warrant overnight and remained at the scene until about 10am on Monday.
