She has been refused TVR twice with the same "family ties" justification in top of the not enough funding, even when we (her sister and myself) will be paying for all (we are both Canadian citizens with a family income of more than 100K per year during the last 5 years and enough savings in our accounts).
Your finances are irrelevant for your sister-in-law's TRV application. As a visitor, she must prove she has personal financial resources to afford the visit plus airfare.
What is interesting is that her mother has been granted TVR under exactly the same financial and family ties circumstances.
That's because parents are likely to be financially dependent on their Canadian children when they visit, whereas siblings/spouses of siblings/nieces and nephews are expected to prove their personal finances for the visit.
3. Children are 4 and 11 years old. Previous TVR refusal (5 years ago) she applied to come alone. This time the purpose of the travel was primary for the kids to enjoy summer vacation in Canada with her aunt and myself. So, this time she applied additional TVR for the children as well.
It's quite clear why your sister-in-law was refused for 'Family ties'. Her mother has a valid TRV/she has visited earlier + as a mother, your sister-in-law's strongest family ties are her minor children (not her husband).... and this time, she applied for her children to travel with her.
That being said, entire families have been granted TRVs simultaneously if each applicant was able to prove his/her individual strong ties + good personal finances without depending on their Canadian hosts.
In the case of your sister-in-law, and based on your post, her financial situation is probably not good enough to support a visit for herself and her two children + she may not have strong ties to her home country.
She must assess her application as a complete package.... and not just the Family Ties and Financial refusal grounds