Just want to suss out something here while waiting to hear back on Monday.

With Westpac, and running your own business is your source of income, apparently they require a 20% deposit for a home loan. So for a $220,000 loan, dep. is around $40,000.

However, if you already have tenants there and will be staying on, as the purchase is for family members and they will be paying the mortgage, will the bank still want that much as a deposit?

The banks require security for their loan. Sometimes they'll lend you 100% if the property is valued at more than your borrowing or you could use another asset as security.

Obviously you're applying for a 'low doc' loan. Unfortunately due to either uneven cash flow within your business, or low documentation (less then 2 years) the bank requires a minimum of a 20% deposit. Non-bank lenders may allow you to borrow up to 85%, but they usually attract higher interest rates and fees.

If the property is currently tenanted, you can add the rental income to your annual income for loan purposes.

There are options available to fund deposits, such as Deposit bonds, Equity pledge etc.