I have studied the guidelines where it is stated that the sponsor should have an annual income to support the applicant. Since she is living with me and kids outside Canada as a house wife. She does not have any annual income source or Job. How this will effect my application? Will it create some problem?
Explain in the application that she has been living with you and taking care of the children. Then include evidence of your job and income, any savings and property, and some evidence of your plans back in Canada: for example, you could talk about the kind of work you and she are going to look for, provide proof of any education or training that would help get this type of work, explain where you are going to live, etc. If a family member is offering to let you live in their home until you have jobs or offering financial support, get a letter from them stating this.