The good news is that AIB is stepping into the government's shoes by paying a special cash bonus for house-hunters who borrow from the bank before the end of the year. The 2,000 inducement is a lot less than the 3,810 grant the government used to pay, but it should take some of the sting out of the heavy cost of setting up home.

Borrowers will also qualify for the 12-month discounts on tracker mortgages that AIB introduced in May for first-time buyers. Instead of paying the normal tracker rate of 4.1% on mortgages over 250,000, first-time buyers will pay 3.6% for the first year.

According to AIB's calculations, this is a better deal than Bank of Ireland, even though its discounted rate of 3.95% lasts up to two years. However, with firsttime buyers typically trading up within five to seven years, it is difficult to see how Bank of Ireland's two-year discount would not be the best answer for most people.

Before doing the arithmetic, remember that all tracker rates currently quoted by the banks will increase by the quarterpoint hike in interest rates announced by the European Central Bank on Thursday.

PENSION INCENTIVE MIRED IN RED TAPE

WITH Brian Cowen being so stingy, it is no surprise that only 3% of SSIA savers plan to divert their windfalls into a pension.

Under pressure from the pensions industry, the finance minister reluctantly introduced a scheme to encourage savers to roll their SSIAs into retirement funds. But it is mired in red tape.

On paper, the 1-for- 3 incentive is open to anyone earning less than 50,000 a year but it is only worthwhile if your pay is less than 32,000. Anyone earning more than this will be in the top 42% tax bracket and could get more generous tax relief by contributing to a pension in the normal way.

Cowen tightened the rules even more last week by requiring that SSIA money must remain within a pension for a least a year to qualify. The idea was to stop crafty pensioners from milking the system by laundering their SSIAs through their pensions.

Despite the lacklustre response, the Financial Regulator is urging SSIA savers to think again about parking their windfalls in a pension. "Savers who are not eligible under the rules of this incentive . . . for example those who earn over 50,000 . . . can still use the funds from their maturing SSIAs to improve their pension provision, " says consumer director Mary O'Dea.

"Consumers should seek independent advice on the best way to use their SSIA lump sum to build up their savings for retirement, whether or not they qualify for the incentive."

INSURERS WARN OF WEEKEND FLOOD RISK ITmay be autumn but the biggest threat to your home this weekend, especially if you live in a coastal area, comes from higher-thannormal 'spring' tides. The high seas, expected to last until Tuesday, will increase the risk of flooding, especially if accompanied by storms and heavy rain.

Insurers are warning those in at-risk areas to prepare for the worst.

Hibernian has published a guide to preventing flood damage called Home & Dry.

You should store important documents, including insurance details, in a dry, accessible place. Be prepared to switch off electricity and gas and ensure your home is properly maintained. If the worst happens, contact your insurer immediately to get help with paying for repairs.

Do not be tempted to use cowboy tradesmen who will often prey on flooded areas.

Ask your insurer for the names of reputable firms. If possible, take photos of all the areas damaged . . . it could help with claims. Don't throw damaged property out straight away because your insurer will want to assess it.

Make sure your property is completely dry before you attempt any redecoration.

Do it too early and the work will be a waste of time and money.