The T3 is an ok choice, but with your budget you may want to consider an Olympus E620 two lens kit. You give up a little in low light coverage for more flexibility in lens zoom coverage.
The Canon 18-55 is a good lens for a kit lens, but the Olympus kit lenses are considered some of the best. With the two lens kit, you get a pretty good zoom to cover some more distant shots. If you are mainly interested in indoor / landscape / local scenery shooting, the 18-55 is probably fine.
Of course, if you can borrow some stuff from your brother, that makes the Canon more attractive.
Don't forget that you may want to purchase some accessories in addition to the basic kit - at least a couple of memory cards, possibly a spare battery, and a card reader for your computer if you don't already have one.
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