"They are very happy," a source told E! News, adding that the pair will spend the summer in New York to prepare for the baby's birth.
Another insider said that Candice, 27, is "so excited" and is currently about to enter her second trimester.
This will be the first child for Candice and her Brazilian model love Hermann, who popped the question last August. The timing couldn't be better for the Victoria's Secret Angel, as her close friend and fellow catwalk queen Behati Prinsloo is also expecting her first child with husband Adam Levine.
"Candice and Behati are best friends and they are not far apart from each other in pregnancy due dates," the source said. "They both have been experiencing the first stages of being pregnant together and are happy to have each other who understand. They can't wait to be mummies!"
The South African model and her husband-to-be have been together for just over ten years. The pair first met in Paris when Candice was 17.
Last summer a source confirmed the couple's engagement, revealing that Candice "couldn't be happier". Just like with her pregnancy, the blonde beauty declined to break the news to her fans on social media.
She has given her eight million Instagram followers the occasional glimpse at her handsome beau, but Candice largely keeps her private life out of the spotlight. Last year she did admit that she was ready to start a family – and shared some sweet words about her fiancé.
"It's important to travel and be apart and miss each other," Candice told E! News. "In the beginning it was long distance and when you long for something so much, I think it's a good thing.
"It helps because we've grown together over the years. He's helped me a lot through all the experiences and been a rock in my life.
"It's hard... If I was to meet somebody [now] it'd be hard for them to understand all the things I've gone through and he's been through that from the beginning."