How to setup Home-Assistant MQTT with username & password

The following setting in configuration.yml connects to a local mosquitto MQTT broker using username and password:

mqtt:
  broker: "127.0.0.1"
  username: "homeassistant"
  password: "iraughij3Phoh7ne9Aoxingi2eimoo"

Complete configuration.yml:

default_config:

http:
  use_x_forwarded_for: true
  trusted_proxies:
  - 127.0.0.1
  ip_ban_enabled: true
  login_attempts_threshold: 5

mqtt:
  broker: "127.0.0.1"
  username: "homeassistant"
  password: "iraughij3Phoh7ne9Aoxingi2eimoo"

# Text to speech
tts:
  - platform: google_translate

group: !include groups.yaml
automation: !include automations.yaml
script: !include scripts.yaml
scene: !include scenes.yaml