"He flew into Los Angeles to attend the iHeartRadio Jingle Ball with her as her date... and Taylor has been traveling from Seattle to Canada to see him," the source said.
"It is still casual and very new and she is still technically single."
The source added that Taylor, 26, and her new mystery man have been "seeing each other since November," when the Bachelor in Paradise alum first teased the fling on Instagram.
The new man in question was reportedly the subject of Taylor's steamy November 19 Instagram post in which she had provided an update on her love life.
"Well...not really, not yet," Taylor captioned a photo of herself smiling big and wearing a "Home is Canada" shirt.
"Maybe one day! But I just got home from a 5 day trip to Toronto and it was busssayyy with both work and play. While this trip was busy with work, it also served as a sexcation."
The podcast host continued, "I'm still navigating boundaries around dating and social media. I don't want to hid my life but also HATE the pressure that comes along with it all, and I don't like it being a huggge deal. I also know you all learn, want to support, and are curious about my experiences."
Taylor admitted dating can be weird and uncomfortable at times, with a lot to sort out.
However, Taylor made a point to add she and this Canadian man are not exclusive.
"He's not the only person I'm seeing, and I'm not the only person he is seeing. And we're navigating it, as we're quiteee fond of each other," Taylor wrote.
"It might not go anywhere, it might stay where it is and it also might progress, who knows! It's in that grey area, like most of life."
Taylor explained at the time she loves being honest and real with her fans.
"I don't want to only share the highlights and the things I think are certain and 'perfect' and create more pressure or an unrealistic image around a relationship, so I appreciate the support and respect you all have shown me throughout this as I navigate what I do and don't share," Taylor explained.
"The highs and the lows and all the in between. What I feel most about this trip is gratitude. Grateful and appreciative for my adventures, for my new friends, for stepping outside of my comfort zone, for shared vulnerability, for having supportive people in my life, for my work, and for all of you."
She concluded, "I'm feeling the feels and apparently can't stay away from Canada."
Taylor's last relationship with "Canada Man" lasted a little over one year. She admitted in her Let's Talk About It With Taylor Nolan podcast in October she had been unhappy throughout the second half of the relationship.
Taylor and Derek, however, announced their decision to split and call off their engagement in late June 2018 after trying to make a long-distant relationship work.
"We put everything we could into our relationship and are heartbroken to go forward separately, but we know this is the best decision for the both of us," the pair told Us in a joint statement at the time.
"We will still be present in each other's lives with support, admiration and respect for each other."
In October, Taylor said during her podcast she and Derek hadn't spoken in "over a year" but she missed how affectionate he was in their relationship.
Derek just appeared on Bachelor in Paradise's sixth season this past summer and became a fan-favorite.
While Season 6 of BIP was airing in late August, Derek landed a lot of support to become the franchise's leading man for 2020, before Peter Weber was officially announced as The Bachelor star for Season 24.
After Demi chose to dump Derek and pursue her feelings for a girl she had left back home to film the show, Kristian Haggerty, Derek vented about how he's never a woman's first choice although he's always told he is "a great guy."